In This Issue: Which Way For Russia's Sovereign Rating: Road To Riches Or Slippery Slope: Russians elect a new president next year, opening the way for big uncertainties that could weaken creditworthiness and sap current strong growth. The new wealth has trickled down very unevenly, but Russians consumers are enjoying the growth spurt, while an emerging credit culture has sparked rapid expansion in banking and securitization.Increased Ratings Momentum In 2007 For Major Kazakh, Russian, And Ukrainian Banks: Barring any marked economic downturns in the short to medium term, banks in the three nations will maintain overall performance at levels consistent with current ratings. Positive and stable outlooks on all rated banks indicate that the positive rating momentum will continue this year. As Russian Securitization Expands, Our Ratings Process Gets Refined: One clear sign of how far Russia's structured finance market has come is the emergence in 2006 of "existing-asset transactions." These involve the securitization of assets originated locally with domestic obligors, and they indicate the growing level of comfort and experience that originators and investors have with Russian securitizations. Russian Steelmakers' Growth Ambitions Put M&A On The Front Burner: The key rating driver for the Russian steel industry in the medium term will be M&A activity: Producers are trying domestic acquisitions to improve vertical-integration capabilities and foreign acquisitions to secure market access and bypass import restrictions. Russia's Slow March Toward Global Corporate Governance Standards: Corporate governance in Russia is generally becoming more transparent, and more information is being disclosed, thanks to increasing pressure from international investors. Transparency And Disclosure By Russian Companies 2006: Modest Progress Amid The IPO Zeal: The annual Transparency and Disclosure Survey of the 70 largest publicly listed companies in Russia by Standard & Poor's Governance Services signals very modest progress in 2006, but substantial improvements in transparency of ownership, mostly in connection with IPOs. Transparency And Disclosure By Russian Banks 2006: Modest Improvement And Better Ownership: The annual Transparency and Disclosure Survey of the 30 largest banks in Russia by Standard & Poor's Governance Services signals modest progress in 2006. The survey notes substantial improvements in transparency of ownership and better disclosure of risk management policies. Transparency And Disclosure By Ukrainian Banks 2006: A Low Level Of Information Disclosure In The Face Of The Need For Capital: The level of public information disclosure of the 30 largest Ukrainian banks is not yet at the level required to attract investors, according to the first transparency and disclosure study by Standard & Poor's Governance Services and the Financial Initiatives Agency of Ukraine. Corporate Governance In The Ukrainian Banking Sector: Market Pressure Is Not Yet Sufficient To Force Full Development Of International Standards: The level of public information disclosure of the 30 largest Ukrainian banks is not yet at the level required to attract investors, according to the first transparency and disclosure study by Standard & Poor's Governance Services and the Financial Initiatives Agency of Ukraine. | 
