Research Update: Russian Energy Utility Mosenergo (AO) Upgraded To 'BB/ruAA' On Improved Performance; Outlook Stable May 11

Standard & Poors, May 2011

Abstract
Russia-based energy utility Mosenergo reported a strong financial performance and cash flow generation in 2010. Our view of an improved financial risk profile supports a higher stand-alone credit profile assessment. We are raising our ratings on Mosenergo to 'BB/ruAA' from 'BB-/ruAA-'. The stable outlook reflects our view that Mosenergo's key credit metrics and liquidity will likely remain commensurate for the ratings. On May 27, 2011, Standard & Poor's Ratings Services raised its long-term corporate credit and Russia national scale ratings on Russia-based electricity and heat generator Mosenergo (AO) to 'BB/ruAA' from 'BB-/ruAA-'. The outlook is stable. The upgrade reflects a combination of strong operating cash-flow generation at Mosenergo, which we expect to be sustainable, and our expectations that Mosenergo's credit...

Companies mentioned in this report are:
- Mosenergo (AO)

Action: Outlook: Stable
Action: Upgraded

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.

- Mosenergo (AO)

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