MOSCOW (Standard & Poor's) Nov. 3, 2006--Standard & Poor's Ratings Services said today it affirmed its 'BB+' long-term corporate credit rating on Kazakhstan Electricity Grid Operating Co. (JSC) (KEGOC). The outlook remains stable. "The rating on KEGOC continues to reflect its aggressive financial policy, as a result of an ambitious grid renovation and development program," said Standard & Poor's credit analyst Eugene Korovin. The rating is further constrained by the company's high exposure to foreign currency and floating interest risk; the operational challenges arising from the implementation of its North-South construction project; and the relatively weak characteristics of the national power sector. These risks are offset by KEGOC's strategic importance to the Republic of Kazakhstan (foreign currency BBB/Stable/A-3; local currency
