S&P ups Transelectrica rating

Standard & Poor's said it raised its long-term corporate credit rating on Romania-based electricity transmission system operator C.N. Transelectrica SA to BB from BB-.

The outlook is stable.

"The upgrade reflects the decreasing regulatory and market risks, as well as improved forecast financial performance," said S&P credit analyst Andreas Zsiga.

S&P said Romania's improved macroeconomic stability, economic reforms, and its possible accession to the EU by 2007 reduces the risk for adverse politically influenced actions. Transelectrica continues to be exposed to the Romanian economy, which is weaker and less stable than most Western European economies. Transelectrica's payment collection problems are decreasing but remain a negative factor for the rating.

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