The ratings on JSC Kazakhstan Electricity Grid Operating Co. (KEGOC), the state-owned operator of Kazakhstan's high voltage electricity transmission grid, reflect the difficulties of operating in a transition economy that suffers from historical underinvestment in infrastructure and problems with the nonpayment of electricity. The economy also requires extensive modernization and has a limited track record of regulation in the electricity industry. These weaknesses are offset at this rating level by the company's monopoly position in Kazakhstan and its essential role in supporting economic growth. KEGOC operates and maintains the transmission grid, after its role as the Kazakhstan market operator was transferred to a new entity, CJSC KOREM, in April 2000. The structure and the operation of the Kazakh electricity market,
