S&P ups Irkutskenergo to B

Standard & Poor's said it raised its long-term issuer credit ratings on Irkutskenergo AO EiE to B from B-. The outlook is stable.

S&P said the upgrade reflects Irkutskenergo's improving profitability on the back of significant recent tariff increases, normalizing operating performance and strengthening economic performance in the supply area.

The ratings on Irkutskenergo remain constrained, however, by the limited ability for full costs pass-through in Russia's nontransparent and politicized tariff regulation, the weak characteristics of regional power and heat markets, with relatively low tariffs and continued poor payment discipline from customers, according to S&P.

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