Strategic importance to the Republic of Kazakhstan State guarantees on about 70% of outstanding debt Monopoly position as national transmission electricity grid operator and dispatching unit Good prospects for medium-term power demand growth Aggressive financial policy Large transmission grid renovation and development program involving significant construction risk High exposure to foreign currency and floating interest risk Customer concentration and nonpayment risk The rating on Kazakhstan Electricity Grid Operating Co. (JSC) (KEGOC) reflects its aggressive financial policy, stemming from an ambitious grid renovation and development program; 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
