28 Mar 2014 13:11
JSC Russian Grids
JSC Russian Grids receives investment grade rating from Standard and Poor's
28 March 2014. Moscow, Russia. - JSC Russian Grids (LSE: RSTI) (the "Company"), the largest electricity transmission and distribution grid company in Russia, today announces that Standard & Poor's Ratings Services (''S&P'') has assigned an investment-grade long-term credit rating of 'BBB-' and an 'ruAAA' Russia national scale rating to the Company.
Commenting on the news, Egor Prokhorov, Deputy Director General for Finance of JSC Russian Grids, said: "The receipt of an international investment grade credit rating is a clear testament to our operations. It indicates the trust that JSC Russian Grids enjoys with the international financial community and testifies to the Company's strong position in the sector and the Russian economy overall, as confirmed by the Company and its management during the first year of operations in our current form."
S&P took into account the Company's leading position in the Russian power sector, including a monopoly position in electricity transmission and a dominant position in electricity distribution.
The S&P press release announcing the rating and key considerations is available at www.standardandpoors.com.
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For further information:
JSC Russian Grids
Maria Stepanova, Head of IR +7(495) 995 5333 (ext. 3961)
FTI Consulting
Larisa Millings +44 (0)20 3727 1364
Oleg Leonov / Maria Shiryaevskaya +7 (495) 795 0623
JSC Russian Grids is the largest electricity transmission and distribution grid company in Russia. It is also one of the largest electricity transmission and distribution grid companies in the world by length of electricity lines and installed transformer capacity. JSC Russian Grids holds interests in and manages 11 interregional, 5 regional distribution grid companies and Federal Grid Company in Russia. The Company together with its subsidiaries owns and operates approximately 2.2 million kilometers of electricity transmission and distribution lines with a total installed transformer capacity of approximately 739 GVA. Through its subsidiaries, the Company operates in 73 regions of Russia. As of 30 June 2013, the Company's revenue amounted to RUB 348.8 bn, while adjusted net profit[1] totaled RUB 36.3 bn.
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of JSC Russian Grids. You can identify forward looking statements by terms such as "expect," "believe," "anticipate," "estimate," "intend," "will," "could," "may" or "might" the negative of such terms or other similar expressions. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements to reflect events and circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. Many factors could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, general economic conditions, our competitive environment, risks associated with operating in Russia, rapid technological and market change in our industry, as well as many other risks specifically related to JSC Russian Grids and its operations.
[1] Adjusted net profit is calculated as net profit not taking into account impairment of available-for-sale investments, impairment of promissory notes, provision for impairment
receivables and deferred income tax liabilities referred to them.