Moody's rates Kazakhstan Electricity Grid Baa1

Moody's Investors Service said it assigned a local currency issuer rating of Baa1 with positive outlook to Kazakhstan Electricity Grid Operating Co. (Kegoc).

The rating reflects the baseline credit assessment of 5, Baa1 local currency rating of the Kazakhstan government, high dependence and high support, Moody's noted

The baseline credit assessment of 5 is underpinned by Kegoc's role as Kazakhstan's electricity transmission grid operator and its aging infrastructure is undergoing necessary refurbishment, which should deliver increased volumes, lower transmission losses and more efficient services, the agency added.

Moody's said a key credit challenge arises from significant execution risk arising from large-scale, majority debt-funded investment program.

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