S&P affirms Kazakhstan Electricity Grid

Standard & Poor's said it affirmed its BB+ long-term corporate credit rating on Kazakhstan Electricity Grid Operating Co. (JSC).

According to S&P, the rating was removed from CreditWatch, where it had been placed with negative implications on Oct. 3, following the CreditWatch listing of the Republic of Kazakhstan (foreign currency, BBB-/stable/A-3, local currency, BBB/stable/A-3).

The outlook is stable.

The agency said it rates Kazakhstan Electricity Grid using a top-down approach, the rating is two notches below the local currency rating on the Republic of Kazakhstan because of Kazakhstan Electricity Grid's strategic importance to the country.

S&P added that the rating on is constrained by 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.

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