The credit rating on the monopoly operator of the Kazakhstan high-voltage electricity transmission grid, Kazakhstan Electricity Grid Operating Co. (JSC) (KEGOC), reflects: its aggressive financial policy, which stems from its ambitious grid development program; operational challenges arising from the implementation of two large investment projects; and the weak characteristics of the national power market. These risks are mitigated by: KEGOC's strategic importance to the Republic of Kazakhstan (foreign currency BBB-/Stable/A-3; local currency BBB/Stable/A-3), which translates into strong explicit support for the company and increasingly supportive tariff regulation; KEGOC's continued monopoly position in a relatively stable electricity transmission business; and the good medium-term prospects for national power consumption growth. KEGOC is strategically important to the Kazakh government as the provider of
