MOSCOW (Standard & Poor's) March 10, 2005--Standard & Poor's Ratings Services said today it affirmed its 'BB+' long-term corporate credit rating on the monopoly operator of the Kazakhstan high-voltage electricity transmission grid, Kazakhstan Electricity Grid Operating Co. (JSC) (KEGOC). The outlook is stable. "The rating on KEGOC reflects its aggressive financial policy, which stems from the company's ambitious grid development program; operational challenges arising from implementation of two large investment projects; and the weak characteristics of the national power market," said Standard & Poor's credit analyst Eugene Korovin. These risks are mitigated by KEGOC's strategic importance to the Republic of Kazakhstan (foreign currency BBB-/Stable/A-3; local currency BBB/Stable/A-3), which translates into strong explicit support for the company and increasingly supportive tariff
