S&P affirms Federal Grid

S&P said it affirmed its BBB- long-term issuer credit rating on Federal Grid Co. of the Unified Energy System.

The outlook is stable.

The agency also affirmed the BBB- issue rating on the senior unsecured notes issued by Federal Grid Finance DAC.

“The affirmation reflects our expectation that, after FGC's sale of a 10% stake in listed Russian generation company InterRAO, FGC's average funds from operations (FFO) to debt will be in the 30%-40% range in 2018-2019, supported by relatively stable cash flows from its regulated activities,” S&P said in a news release.

“The affirmation also reflects our continued expectation of a high likelihood of extraordinary support from the Russian government, FGC's ultimate shareholder and regulator.”

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