OREANDA-NEWS. Standard & Poor's Governance Services said today it raised its corporate governance score (CGS) on OAO TMK (referred to in previous publications as Pipe Metallurgical Co. OJSC), the largest metal pipe producer in Russia, to 'CGS-6+' from 'CGS-5+'.

At the same time, Standard & Poor's raised its score on the Russia national scale to 'CGS-6.7' from 'CGS-5.9'.

The upgrade reflects the consistent, conscious efforts by the board, management, and the majority shareholder to develop effective governance mechanisms at the company. TMK's IPO in October 2006 provided an additional stimulus for improvements to governance practices.

The main strengths of corporate governance practices at TMK include:
• The board's balanced composition, wide authority, and established procedures.
• High overall transparency, an effective audit process, and strong ownership disclosure. IFRS accounts were presented before the annual meeting in 2006 and interim statements were released for the first time this year.
• Wide scope of shareholder rights and generally strong shareholder meeting procedures under Russian law. Further support is provided by the company's listing on the London Stock Exchange, which subjects governance procedures to U.K. regulation.