The rating on Austria-based utility company KELAG incorporates Standard&Poor's Ratings Services' view of the company's strength in regional electricity and heating supply and distribution in the Austrian State of Carinthia, as well as its strong generation asset base and conservative use of financial leverage. We view KELAG's business risk profile as "strong" because of its dominant market position in regional electricity supply. According to company information, the market share in household electricity supply is close to 100% in the own distribution network area, and the customer turnover rate is less than 1%. Our assessment of the business risk profile also reflects KELAG's stable and predictable cash flows, which stem from its monopoly regional distribution activities in electricity, gas,
