Moody’s Confirmed Credit Rating of KEGOC

Dec 25. KEGOC

Moody’s Confirmed Credit Rating of KEGOCThe International Rating Agency Moody’s confirmed the investment grade credit rating of Kazakhstan Electricity Grid Operating Company (KEGOC JSC). The long-term rating Вaa3/Outlook Negative.

This assessment basically evidences that in conditions of global recession the company maintains confidence of international investors in the strategic sector of power industry along with domestic economy in whole.

Moody’s analysts note that with the government assistance, the company will be able to continue cooperation with creditor banks and reserve access to their funds. In conditions of 100% state control, Moody’s considers KEGOC as Government Related Issuer (GRI). In accordance with the Moody’s rating methodology for GRIs, KEGOC’s Baa3 issuer rating incorporates a significant uplift for the state’s potential support to the company’s standalone credit quality measured by a Baseline Credit Assessment (BCA) of 14 (on a scale of 1 to 21, where 14 is equivalent to B1).

In the opinion of the President of KEGOC, Almassadam Satkaliyev, this rating reflects a high degree of financial transparency of the company, investment program implementation efficiency and lasting partnership with international financial institutes. At the same time, the solution of the agency also reflects the best practice of management.

The company has surplus cash flows, all obligations are secured by sovereign guarantees, cash collaterals and formed reserves.

KEGOC also has the following credit ratings:

• Standard&Poors on obligations in national and foreign currencies ВВ+/Outlook Stable (confirmed in December, 2009);
• Fitch on foreign currency ВВВ-/Outlook Stable and national currency ВВВ/Outlook Stable (assigned in December, 2009).