On May 13, 2009, Standard&Poor's Ratings Services revised its outlook on Kazakhstan Electricity Grid Operating Co. (JSC) (KEGOC), state-owned transmission grid operator, to stable from negative. At the same time the 'BB+' long-term corporate credit rating was affirmed. The outlook revision follows the revision of the outlook on the Republic of Kazakhstan (foreign currency BBB-/Stable/A-3; local currency BBB/Stable/A-3; Kazakhstan national scale 'kzAAA') to stable from negative on May 8, 2009. We apply a top-down rating approach to KEGOC, notching down two notches below the local currency rating on the sovereign. 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+'. KEGOC's stand-alone credit
