BAKU, Azerbaijan, February 10. Fitch affirmed Kazakhstan Electricity Grid Operating Company’s (KEGOC) long-term foreign- and local-currency issuer default ratings at 'BBB-', Trend reports, citing Fitch.
“We assess KEGOC's Standalone Credit Profile at 'bb+', mainly due to the evolving regulatory framework, some foreign-exchange exposure, sound financial profile, its monopoly position in electricity transmission, and its large size relative to Kazakh peers,” the statement continues.
Fitch cites KEGOC’s link with the government as one of the key drivers of the rating. The credit rating agency says that earlier the electric grid operator received equity injections to fund capital expenditures in the past and Kazakhstan's national pension fund is a large investor in KEGOC's local bonds.
The company's status as a large employer and a natural monopoly that runs the country's main energy infrastructure with significant development plans means that the Kazakh government has a high incentive to support the company in the future.
KEGOC performs the functions of the system operator of the Unified Electric Power System of Kazakhstan and owns and manages the assets of the National Electric Grid. The company operates as a natural monopoly. KEGOC is a subsidiary of “Samruk-Kazyna” Sovereign Welfare Fund JSC.