On Oct. 29, 2007, Standard&Poor's Ratings Services affirmed its 'BB+' long-term corporate credit rating on Kazakhstan Electricity Grid Operating Co. (JSC) (KEGOC). The rating was removed from CreditWatch, where it had been placed with negative implications on Oct. 3, 2007, following the CreditWatch listing of the Republic of Kazakhstan (foreign currency, BBB-/Stable/A-3; local currency, BBB/Stable/A-3). The outlook is stable. We rate KEGOC using a top-down approach; the rating is two notches below the local currency rating on the Republic of Kazakhstan because of KEGOC's strategic importance to the country. KEGOC is the owner and operator of Kazakhstan's core high-voltage electricity grid. The rating on is constrained by the company's aggressive financial policy, stemming from extensive grid investment plans;
