On Nov. 3, 2006, Standard & Poor's Ratings Services affirmed its 'BB+' long-term corporate credit rating on Kazakhstan Electricity Grid Operating Co. (JSC) (KEGOC). The outlook remains stable. The rating on KEGOC continues to reflect its aggressive financial policy, as a result of an ambitious grid renovation and development program. The rating is further constrained by 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 are offset by KEGOC's strategic importance to the Republic of Kazakhstan (foreign currency BBB/Stable/A-3; local currency BBB+/Stable/A-2): The company benefits from strong explicit support and relatively supportive tariff regulation.
