... in most CIS countries is undergoing changes. The introduction of a capacity market and a move to a deregulated wholesale electricity market is under consideration in Kazakhstan for after 2015. The talks about the new market model in Russia are ongoing. What to Watch Credit Metrics: The recent decline of the Kazakh, Russian and Ukrainian currencies may put pressure on the credit metrics of rated utilities with high exposure to foreign currency, owing to a mismatch between their debts and earnings. Most of the companies do not use hedging to reduce their exchange-rate risk. Liquidity remains available from Russian banks, but issues may emerge in Ukraine and Kazakhstan where banking sectors are weaker. Tariff Freeze: The tariff freeze for natural monopolies from July 2014 in Russia will, on balance, be neutral for the operational and financial profiles of generating utilities with high gas exposure, such as Mosenergo. However, networks with...
