On 24th February 2005 the Russian Institute of Directors (RID) published the results of the National Corporate Governance Rating based on the achievements of the year 2004. Based on the results of the year 2004 the national credit rating of OJSC North-West Telecom has been increased from class B++ to A.
Besides North-West Telecom, class A rating has been assigned only to four companies in Russia.
The National Corporate Governance Score (NCGS) is a project of the consortium of the Russian Institute of Directors and the Expert RA agency. This year over 200 Russian companies underwent the assessment according to the method developed by Russian and international experts and including the evaluation of the criteria most significant for investors.
The Rating of RID-Expert RA evaluates companies by four groups of indices:
- rights of Shareholders,
- disclosure of information,
- activity of management and control bodies,
- observance of the interests of other parties concerned and social responsibility.
The rating is assigned as a result of comparing the company’s corporate governance practice with the standards provided for by the Russian law, recommendations of the Corporate Action Code and advanced practice standards set forth by portfolio investors. When it is made up, the data of questionnaires filled out by companies and public information are used.
North-West Telecom has been included in class A, that is a company with a high corporate governance level, observing the requirements of the Russian laws and adhering to the recommendations of the Corporate Acting Code in its practice. According to experts ‘in NWT there are no risks of any violation of investors’ rights, careless activities of executive bodies of the company or provision of poor-quality information. The company takes into account the interests of parties concerned and pursues active policy in the field of corporate social responsibility.’ The general corporate governance level of class A companies is sufficient to attract funds from conservative portfolio investors.
The increase in the Corporate Governance Rating of RID-Expert RA is a recognition of the positive practice of corporate governance of OJSC North-West Telecom, characterized by the information transparency of the Company and efficient work of the committees of the Board of Directors.