Strategic importance to and support from the government of Kazakhstan. Monopoly position as transmission grid operator. Increasingly transparent and cost-reflective tariff regulation. Good prospects for electricity transmission and consumption volume growth in the medium term. Aggressive financial policy resulting from an ambitious capital expenditure program. Growing debt service, which further constrains financial flexibility. Operating challenges arising from the implementation of two large investment projects. The weak characteristics of the Kazakh power market, with relatively high customer concentration and limited solvent demand. The credit rating on the monopoly operator of the Kazakhstan high-voltage electricity transmission grid, Kazakhstan Electricity Grid Operating Co. (JSC) (KEGOC), reflects: its aggressive financial policy, which stems from its ambitious grid development program; operational challenges arising from the
