On October 16, 2012, three subsidiaries of MRSK Holding—IDGC of Center and Volga Region, IDGC of Volga, and IDGC of Urals—received credit ratings from Moody’s, a major international credit rating agency. Sberbank CIB acted as a consultant in the rating process.
In its report, Moody’s notes that the main factors appreciated by the rating agency are the large market share held by the companies in the regions of their operations, the interrelationship between their electricity distribution tariffs and adjustments to their capex programs, and their management’s plans to maintain a low debt position of the companies.
Since the government is the majority shareholder of MRSK Holding and is interested in the development of Russia’s distribution grid sector, Moody’s considers the MRSK Holding subsidiaries to be government-related issuers (GRI). Their ratings take account of the government’s potential support for them via MRSK Holding.
“The assignment of these ratings to MRSK Holding’s subsidiaries indicates their stable financial situation and growth prospects,” said Deputy Executive Director for Economic Affairs and Finance Aleksey Demidov. “Securing these solid ratings from an international agency allows us to broaden our access to finance, diversify the base of debt investors and provide access to new capital markets for MRSK Holding’s subsidiaries.”