The agency said in a statement that it had raised its transparency index for large Russian companies from 40% in 2003 (34% in 2002) to 46% in 2004.
The probe was based on the analysis of information disclosure, above all, from an international investor's perspective. The agency's questionnaire comprised 89 items related to ownership arrangements, relations with investors, financial information and that on transactions, the make-up of boards of directors and management and their activities. The comparative analysis of the companies involved in the probe shows a general improvement of information disclosure despite tensions between the business community and the state, which were stirred by the Yukos affair.
S&P believes transparency is an important indicator of the level of corporate governance and investment climate in a country. "The lack of transparency in terms corporate structure and transactions has long been a big problem for investors in Russia," said Yulia Kochetygova, S&P's Russian-based corporate governance director.
"We believe the general level is rising. However, Russian companies are still at a considerably lower level than that required by the majority of investors. This refers to the disclosure of information on basic parameters [company's property, its performance and management structure]," said the expert.
