Moodys appropriated IDGC of Volga, JSC credit rating
12 october 2012
On October "12", 2012 the International rating agency Moody's Investors Service appropriated the international credit rating of Ba2 of IDGC of Volga, JSC. Forecast of change of a rating is "stable". Besides, Moodys Interfax appropriated IDGC of Volga, JSC a rating on a national scale which reflects solvency of the company concerning other Russian borrowers.
Ratings are appropriated to IDGC of Volga, JSC for the first time. The largest shareholder of the company IDGC Holding, JSC with shares in authorized capital of IDGC of Volga, JSC - 67,626 %. The credit rating of IDGC Holding, JSC is at level Va1.
During assignment of IDGC of Volga, JSC of the specified rating the following key positive factors were taken into consideration:
(1) the status of the leading power distributive company in the regions served by the company (seven regions with dense population in the southeast of the European part of Russia);
(2) possibility of the state support through IDGC Holding, JSC;
(3) interrelation between tariffs of IDGC of Volga, JSC for the electric power transportation and the investment program of the company, established as a result of revision of RAB tariffs for all seven regional branches of the company;
(4) a reserve of debt loading of the company within the appropriated rating.
One of the shortcomings, an assessment of the company the raised level of business risks of the company, caused by features of regulation of the Russian electronetwork sector, and some uncertainty of the state strategy on its further development is influenced.
Because the state is the majority shareholder of IDGC Holding, JSC and is interested in development of distribution grid complex of Russia, the Moody's agency considers the company as the issuer supported by the state (GRI). The appropriated rating considers possibility of rendering of the company of the state support through JSC IDGC Holding.
Moodys adheres to a stable forecast concerning a rating of IDGC of Volga, JSC as the company has realistic development plans and corrections of the activity taking into account dynamics of tariffs, existence of financing and the general economic situation. The stable forecast is also caused by that experts of Moody's expect from IDGC of Volga, JSC ability to keep financial position, which corresponds to its current rating.
With the full text of the materials published by Moody's, it is possible to familiarize on an official site of rating agency:

Link to russian version of material