Moody's rates Inter Rao CFR, PDR Ba1

Moody's Investors Service said it assigned Ba1 corporate family and probability of default ratings to JSC Inter RAO UES, a Russian major electric utility.

The outlook is stable.

At the same time, Moody's Interfax assigned an Aa1.ru national scale rating to the company.

Given the Russian government's control over Inter RAO through both direct and indirect shareholding, Moody's said it considers the company a government related issuer.

In accordance with Moody's rating methodology for government related issuers, Inter RAO's Ba1 corporate family rating incorporates a two-notch uplift to the company's standalone credit quality as measured by a baseline credit assessment of Ba3.

The uplift was driven by the credit quality of the Russian government and Moody's assessment of strong probability of state support in the event of financial distress, as well as high default dependence between the company and government, the agency said.

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