Fitch affirms Yakutskenergo

Fitch Ratings said it affirmed OAO AK Yakutskenergo's long-term foreign- and local-currency issuer default ratings at BB and national long-term rating at AA-(rus).

The outlook is stable.

Fitch said it rates the credit strength of Yakutskenergo at three notches below that of its controlling shareholder, the Russian Federation due to a range of factors including government control, significant government investment in supporting infrastructure, strategic importance, direct subsidization and strong operational influence through tariff-setting and tariff approvals.

The ratings also consider the company's exemption from the power and gas liberalization occurring elsewhere in Russia, the agency said.

But its links to the Russian government are weakening, the agency said.

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