Government support Monopoly position in a stable and low-operating-risk electricity transmission business Cost-cover tariff-setting regime Aggressive financial policy Large grid investment program and associated construction risk High exposure to foreign currency and floating interest risk Kazakhstan's relatively weak power sector characteristics In rating Kazakhstan Electricity Grid Operating Co. (JSC) (KEGOC), which is Kazakhstan's state-owned transmission grid operator, Standard&Poor's Ratings Services uses a top-down approach. Because of KEGOC's strategic importance to Kazakhstan, the rating is two notches below the local currency rating on the sovereign. The rating on KEGOC is constrained by the company's aggressive financial policy, large grid investment program and associated construction risk, high foreign currency and floating interest risk exposure, and Kazakhstan's relatively weak power sector
