Strong ongoing and potential extraordinary support from the Republic of Kazakhstan. Monopoly position in the stable and low-operating-risk electricity transmission business. Generally supportive cost-cover tariff-setting regime. Aggressive financial policies. High exposure to foreign currency and floating interest-rate risks. Large grid investment program involving significant construction risk which also lead to significantly negative free operating cash flow generation. Relatively weak power sector characteristics in Kazakhstan. The ratings on Kazakhstan Electricity Grid Operating Co. (JSC) (KEGOC), Kazakhstan's state-owned transmission grid operator, reflect Standard&Poor's Ratings Services' expectations that KEGOC is likely to continue receiving ongoing government support. Furthermore, we believe that the likelihood of timely and sufficient extraordinary government support for KEGOC in the event of distress is "very high". Our
