Standard & Poor's assigns the ‘B’ rating to CJSC SSMO LenSpetsSMU’s new bond issue

14.12.2009

Standard & Poor’s assigned the international scale ‘B’ rating, national scale ‘ruA’ rating and level ‘4’ recovery rating to CJSC SSMO LenSpetsSMU’s bond issue amounting to 2 bn RUB.

On 11 December 2009 Standard & Poor’s rating agency awarded a credit rating of B / ruA / recovery rating ‘4’ for CJSC SSMO LenSpetsSMU’s bond issue. S&P’s decision is of current interest for investors who have to make a decision on bond acquisition by 18 December 2009 (holding a rating not lower than ‘B-’ is a prerequisite for a bond's inclusion in the Lombard List of the Russian Federation Central Bank).

At the same time S&P confirmed the rating of credit linked notes (CLN) as ‘B’.

The recovery rating assigned to CJSC SSMO LenSpetsSMU’s bonds and credit linked notes is close to the maximum level for companies in the Russian Federation. The rating evaluation is based on the evaluation of the company’s assets residual value, which according to S&P is approximately 13.5 bn RUB.

A complete version of Standard & Poor’s report is available on LenSpetsSMU’s financial web-site.

NOTE

The current rating of CJSC SSMO LenSpetsSMU: B / Stable / B; ruA.

LenSpetsSMU was the first and remains the only Russian construction company to receive and publish credit ratings from the largest and most conservative international rating agency – Standard & Poor's. At the same time, LenSpetsSMU is currently the most highly-rated construction company in Russia and Eastern Europe.

The ‘B’ international scale rating means that the company has the capacity to meet its financial commitments on the obligations in full and in due time.

The ‘ruA’ national scale rating shows that the company is characterized by a moderately strong capacity to meet its financial commitments on the obligations in full and in due time, compared to other Russian issuers.

CORPORATE CREDIT RATINGS HISTORY

22.12.2006

The rating as per international scale - ‘B’, outlook – stable, the rating as per national scale – ‘ruA-’ were assigned.

The rating for ruble-denominated bonds of CDR (01 and 02 series), where ZAO SSMO LenSpetsSMU acted as a guarantor, as per national scale ‘ruA-’ was also assigned.

21.03.2007

The ratings as per international scale (‘B’, outlook – stable) and national scale (‘ruA-’) were affirmed.

17.04.2007

The rating for debenture bond (CLN) as per international scale ‘B’ was assigned.

12.12.2007

The outlook as per international scale was revised from «stable» to «positive».

The rating as per national scale was increased from ‘ruA-’ up to ‘ruA’.

The rating of bonded loans of 01 and 02 series was also increased from ‘ruA-’ up to ‘ruA’.

04.04.2008

The ratings as per international and national scales were affirmed.

07.10.2008

The outlook as per international scale was revised from «positive» to «stable» because of financial crisis and overall deterioration of the economy.

The rating as per national scale was left without alternations.

30.01.2009

In spite of the process of changing the credit-linked note (CLN) parameters, the ratings as per international and national scales were affirmed.

26.03.2009

The ratings as per international and national scales were affirmed.

01.09.2009

Following the fulfillment of the major part of debt obligations being subject to redemption in 2009, the international and national scale ratings were affirmed.

11.12.2009

The ratings as per international and national scales were affirmed.

CONTACT DETAILS

Mikhail Dukhovny, Director of Corporate Communications Department
Telephone: +7 (812) 348-21-25, e-mail: dukhovny_m@lenspecsmu.ru

Victor Vasenev, Deputy CFO
Telephone: +7 (812) 348-09-95, e-mail: vasenev_v@lenspecsmu.ru