The rating on Kazakhstan Electricity Grid Operating Co. (JSC) (KEGOC) reflects the company's aggressive financial policy, stemming from extensive grid investment plans; foreign currency and floating interest risk exposure; operational challenges arising from the North-South construction project; and Kazakhstan's relatively weak power sector characteristics. These risks are offset by KEGOC's strategic importance to and support from the Republic of Kazakhstan (foreign currency BBB/Stable/A-3; local currency BBB+/Stable/A-2; Kazakhstan national scale 'kzAAA') and relatively supportive tariff regulation. KEGOC also benefits from its monopoly position in a stable electricity transmission business, and the good medium-term power demand growth prospects. KEGOC is strategically important as the owner and operator of the core high-voltage electricity grid. The rating on KEGOC incorporates state support in the
