SP Upgrades Its Credit Ratings on Two Subsidiaries of MRSK Holding

On February 19 and 25, 2013, international credit rating agency Standard & Poor’s published information that its credit ratings on MOESK and IDGC of Centre were upgraded by one notch to BB on the international scale and ruAA on the national scale.

The credit rating agency notes the high reliability of the companies and their stable financial condition in the long run. In deciding to upgrade the ratings, S&P relied on such key factors as the approved long-term parameters of RAB regulation and an improved situation with respect to the companies’ liquidity position due to their established long-term partner relations with major Russian banks.

Bearing in mind that MRSK Holding is the majority shareholder of MOESK and IDGC of Centre, S&P considers the companies to be government-related issuers. Their ratings take account of the government’s potential support for them via MRSK Holding in an adverse financial situation.

IDGC of Centre was first rated by S&P in 2009. MOESK received a rating of BB-/RuAA- in January 2012. Additionally, MOESK is rated Ba2/Aa2 by Moody’s with a stable outlook.

Commenting on the news, MRSK Holding’s First Deputy Executive Director Aleksey Demidov said, «The upgraded ratings on our subsidiaries prove their sustained growth and stable financial condition. MOESK bonds totaling 15 billion rubles and IDGC of Centre bonds of 4 billion rubles are currently traded in the public market. The companies are the main benchmarks for the placement of bonds issued by other interregional distribution grid companies. We hope that the upgraded credit ratings on MOESK and IDGC of Centre will encourage investor interest in newly issued securities of our grid companies and will expand opportunities for our work in capital markets.»