Research Update: Kazakhstan Electricity Grid Operating Co. Upgraded To 'BB+' On Improving Financial Performance; Outlook Stable

Kazakhstan Electricity Grid Operating Co. (KEGOC) reported improved credit metrics for 2017 on the back of favorable tariffs and early debt repayments, with funds from operations to debt at 35%. We continue to see a high likelihood that KEGOC would receive timely and sufficient extraordinary support from its ultimate owner, the Kazakh government, if necessary. We are therefore raising our rating on KEGOC to 'BB+' from 'BB', based on its improving stand-alone performance. The stable outlook reflects our expectation that the improvement in KEGOC's performance is sustainable and that the level of state support will remain unchanged. On May 29, 2018, S&P Global Ratings raised its long-term issuer credit rating on Kazakhstan Electricity Grid Operating Co. to 'BB+' from 'BB'.

...+ Kazakhstan Electricity Grid Operating Co. (KEGOC) reported improved credit metrics for 2017 on the back of favorable tariffs and early debt repayments, with funds from operations to debt at 35%. + We continue to see a high likelihood that KEGOC would receive timely and sufficient extraordinary support from its ultimate owner, the Kazakh government, if necessary. + We are therefore raising our rating on KEGOC to '##+' from '##', based on its improving stand-alone performance. + The stable outlook reflects our expectation that the improvement in KEGOC's performance is sustainable and that the level of state support will remain unchanged....

Research Update