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Moscow United Electric Grid Upgraded To 'BB' On Modest Expected Debt, Improved Liquidity; Outlook Stable, Off Watch Pos Feb 13

  • ID: 2417862
  • February 2013
  • Standard & Poors
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We think that the medium-term tariff structure approved by the regulator for Russia-based electricity distribution utility Moscow United Electric Grid Co. (MOESK) in November 2012 somewhat reduced regulatory uncertainty and will in our view support sound cash flow generation and modest debt leverage. We also note improvements in the company's liquidity, and have revised our assessment of that factor to "adequate" from "less-than-adequate." We are therefore raising our assessment of MOESK's stand-alone credit profile to 'bb-' from 'b+', and in turn the ratings to 'BB/ruAA' from 'BB-/ruAA-'. We are also removing the ratings from CreditWatch with positive implications. The stable outlook reflects our view that MOESK's key credit metrics and liquidity will likely remain commensurate for the ratings. MOSCOW (Standard...

Companies mentioned in this report are:
- Moscow United Electric Grid Co. JSC

Action: Outlook: Stable
Action: Removed From CreditWatch
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.

Research type: News
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- Moscow United Electric Grid Co. JSC

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