Fitch Ratings confirmed BB+ rating of PJSC “MOESK”

On October 2, 2015, Fitch Ratings, an international rating agency, confirmed the long-term Issuer Default Ratings of PJSC “Moscow United Electric Grid Company” (belongs to the Rosseti Group of Companies) with regard to financial obligations in foreign and national currency to be BB+, stable outlook.

As it is reported in press release of the agency, the ratings reflect the robust business profile of PJSC “MOESK” supported by regulated electric power distribution activities in Moscow and the Moscow Region, areas with good financial standings. Although the uncertainty concerning the tariffs and increased borrowing costs puts pressure on the financial performance of the Company, the agency analysts believe that the measures taken by the Company management to mitigate the impact of the recession (reduction of capital investments and expenses) are adequate to maintain the financial profile conforming with the respective levels of the ratings. The agency expects that the security of regular payments concerning funds from operating activities, excluding connection fees, will remain under pressure in 2016 and 2017 due to the impact of high interest rates in 2015, but it will return to the real levels by 2018.