Strategic importance to and support from central government; Dominant position in electricity transmission in Kazakhstan; and Positive changes in the tariff structure. Still politicized tariff-setting; Aggressive financial policy, with rapidly increasing debt; Limited financial flexibility since 2004-2005; and Uncertainty about the fair value of the company's fixed assets, which hinders estimation of profitability and investment needs. The ratings on JSC Kazakhstan Electricity Grid Operating Co. (KEGOC), the fully state-owned monopoly operator of the Republic of Kazakhstan's high-voltage electricity transmission grid, reflect the lack of transparency in tariff regulation, the company's aggressive financial policy, and the expected deterioration of its financial flexibility from 2004-2005, when it starts to repay the principle on its long-term loans. These factors are offset by KEGOC's
