S&P: Irkutskenergo on watch

Standard & Poor's said it placed its B+ long-term corporate credit and ruA Russia national-scale ratings on Irkutskenergo, AO EiE on CreditWatch with negative implications.

The agency said that the CreditWatch placement reflects potential weakening of the company's credit quality after the demerger of its 100% subsidiary, Irkutsk Electricity Grid Co., expected by year-end 2008 and Irkutskenergo's weak liquidity, which is further pressured by potential liquidity claims triggered by the company's unbundling.

In June 2008, Irkutskenergo's board approved the company's restructuring through the spin-off of Irkutsk, the agency added.

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