MOSCOW (Standard&Poor's) Nov 24, 2008--Standard&Poor's Ratings Services said today that it affirmed its 'BB+' long-term corporate credit rating on Kazakhstan Electricity Grid Operating Co. (JSC) (KEGOC), Kazakhstan's state-owned transmission grid operator. The outlook is negative. We apply a top-down rating approach to KEGOC, notching down two notches below the local currency rating on the Republic of Kazakhstan (foreign currency BBB-/Negative/A-3, local currency BBB/Negative/A-3). This reflects KEGOC's strategically important status to the Kazakh government as a provider of core infrastructure services. We estimate KEGOC's stand-alone credit quality at 'B+'. "The stand-alone credit quality 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
