Standard & Poor's Revises Upwards Credit Rating of MOESK

In the opinion of Standard & Poor's, an approval of the long-term regulation parameters by the Federal Tariff Service of the Russian Federation, on RAB method in November of 2012 , for the period of 2012-2017, reduces an uncertainty and tells favorably on the perspectives of a cash flow forming and debt leverage.

The Agency’s report says that a liquidity estimation of JSC “MOESK” is raised to the level “adequate” versus “less than adequate”, determined under the rating assignment in January of 2012. In spite of a negative free cash flow, forecasted by the Agency’s due to an implementation of a large-scale investment program, the current low level of a ratio of the borrowed capital to the own capital, the policy of the long-term bank funds attraction, including the lines of credit, an issue of bonds, and also some kind of flexibility with regard to the investment program, make it possible to tell about a conformity of the Company’s liquidity to the criteria of the rating’s given level. Also, according to the expectations of Standard & Poor's, following the results of 2012, the debt leverage will amount to 1,2õ, and the ratio of the debt to EBITDA shall not exceed 2,5õ during next 2 years.

Supportive factors of the ratings increase of MOESK have been the following ones: a dominant position among the distribution operators of Moscow and Moscow Region (80% and 65% accordingly), a relatively stable cash flow from the electric power transmission and a favorable profile of the settlements’ terms on the obligations, in a long-term perspective.

Standard & Poor's defines JSC “MOESK” as a Company, tied with the state. A probability of the state support is specified, in the event of the Company’s financial hardships.

Information on the confirmed credit ratings of JSC “MOESK” is published at the Company’s official website at the address: http://www.moesk.ru/invest_news/information/ratings/.

JSC “Moscow United Electric Grid Company” (JSC “MOESK”) – is the largest regional distribution grid company (DGC) in the Russian Federation, the control packet of shares whereof (51%) is owned by OJSC “Holding of Interregional Distribution Grid Companies” (IDGC Holding, OJSC), implementing management by IDGC/DGC using the corporate methods (via the Boards of Directors). Shares of IDGC Holding, OJSC are owned by more than 330 thousand shareholders. The controlling shareholder is the state, which owns 53% of the shares.

Labor collective of the companies of IDGC Holding counts over 190 thousand competent specialists. 15,755 people work in Moscow United Electric Grid Company, which services the overwhelming majority of consumers of Moscow and Moscow Region.

Main objectives of the development of JSC “MOESK”, other 12 IDGC/DGC and those of the Holding’s management company in the person of IDGC Holding,

OJSC is provision of a reliable, continuous and qualitative power supply of consumers, a grid connection of the electric power consumers, as well as the investment appeal increase of the distribution electric grid assets.