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

On 24th May 2010, Standard & Poor’s rating agency awarded a credit rating of B / ruA / recovery rating ‘4’ for CJSC SSMO LenSpetsSMU’s stock-exchange bond issue. S&P’s decision confirms the possibility of the bond's inclusion in the Russian Federation Central Bank’s Lombard List, which is of current interest for many investors following the market (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 that the corporate rating of CJSC SSMO LenSpetsSMU, the rating of credit linked notes (CLN) and also the rating of the previous issue of bonds of 01 series remained the same as ‘B’ according to the international scale (outlook – stable) and ruA according to the national scale.

According to the rating agency, placement of the upcoming issue of bonds will allow the company to shift the refinancing risk from 2010-2011 to 2012.

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 asset liquidity value, which according to S&P is approximately 13.2 bn RUB.

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

REFERENCE:

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 Standard & Poor's, the largest and most conservative international rating agency. At the same time, LenSpetsSMU currently ranks as the most highly-rated construction company in Russia and Eastern Europe.

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

The ‘ruA’ national scale rating indicates that the company is characterized by a moderately strong capacity to meet its financial commitments on the obligations in full and on time, as 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 CJSC 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 obligations (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 ruble bonds 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.
24.05.2010	Rating for obligations (stock-exchange bond issue of БО-02 series) as per international scale ‘B’ assigned.

CONTACT DETAILS:

Natalia Menzel, Head of Public Relations

tel. (812) 348-21-25, e-mail: menzel_n@lenspecsmu.ru

Viktor Vasenev, Deputy CFO

tel. (812) 348-09-95, e-mail: vasenev_v@lenspecsmu.ru