On December 07, 2017, Moody's upgraded long-term credit rating of IDGC of Volga, PJSC to Ba1 with stable outlook. At first, in October 2012, IDGC of Volga, PJSC was assigned a Ba2 rating with stable outlook which Moody's then confirmed in 2013, 2014, 2015, and 2016.

Moody's decision to upgrade the rating in December 2017 reflects the following key drivers: (1) the regulatory environment for the Russian energy grids, though still evolving, provides for a timely recovery of operating costs, a somewhat deferred but guaranteed recovery of investments into infrastructure and an adequate return on such investments; (2) electricity distribution volume risks are limited in the future, given the companies' strong or dominant positions in the majority of their markets (Saratov region, Samara region, Orenburg region, Penza region, Ulyanovsk region, the Republic of Mordovia, the Chuvash Republic); (3) the company's financial profiles have recovered after a weak 2015 and are strong for the current rating category; and (4) liquidity for the company is robust. T

hus, the credit rating of IDGC of Volga, PJSC and its parent company Rosseti, PJSC is equal to the sovereign rating of the Russian Federation, the outlook on ratings is stable, which reflects high level of financial stability of IDGC of Volga, PJSC. The full version of Moody's report is available on the agency's web-site: https://www.moodys.com/