UPDATE: S&P raises rating of Russia’s Mosenergo to BBB-, outlook Stable

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MOSCOW, Jun 25 (PRIME) -- International rating agency S&P Global Ratings (S&P) has raised long-term ratings of Russian power producer Mosenergo in local and foreign currencies to BBB- from BB+ with a Stable outlook, the agency said in a statement on Monday.

The outlook on ratings of Mosenergo was Positive before the upgrade of the ratings.

The increase of the rating reflects the opinion of S&P that Mosenergo will maintain its strong credit figures and a rational financial policy. The agency based the rating of BBB- on company activities, not the possibility of state support, as Mosenergo had been gradually improving its indicators since 2015. The company’s ratio of funds from operations (FFO) to debt rose to more than 100% in 2017 from 47% in 2015, the agency said.

The Stable outlook reflects the agency’s expectations that the company will maintain its strong credit figures and the FFO to debt ratio above 60%. But S&P does not forecast another upgrade of Mosenergo’s ratings as it is unlikely that the ratings may be higher than ratings of gas giant Gazprom, which owns 53.5% in Mosenergo through Gazprom Energoholding.

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