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Standard & Poor's upgraded the credit rating of IDGC of Centre to the level of «BB/B/ruAA», outlook «stable»

25 February 2013

February 25, 2013 the international rating agency Standard & Poor's upgraded the long-term credit rating of IDGC of Centre on the international scale from the level «BB-» to the level «BB», outlook «stable». The credit rating on the national scale was increased from «ruAA-» to «ruAA».

According to the agency, the approval by the Federal Tariff Service of the Russian Federation of long-term parameters of tariff regulation for IDGC of Centre for 2012-2017 decreases regulatory uncertainty in the sector of electric power transmission.

Standard & Poor's notes that the level of liquidity of the company is rated as «adequate». Level of debt also remains at an acceptable level. The ratio of «Debt/EBITDA», as the rating agency forecasts, will not exceed 2.5x for several years.

The rating agency considers IDGC of Centre as a company associated with the state, and notes a moderate probability to receive state support by it in an event of financial difficulties.

The dominant position of the company in the regions of its service area, relatively stable level of cash flow from operations for the transmission of electricity and favourable debt repayment schedule are also emphasized as positive factors.

The «stable» outlook reflects the rating agency’s opinion that the company will maintain a moderate level of debt and acceptable liquidity profile on a regular basis.

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