S&P boosts Irkutskenergo

Standard & Poor's said it raised its long-term corporate credit rating on Irkutskenergo, AO EiE to B+ from B.

The outlook is stable.

At the same time, the Russia national-scale rating on Irkutskenergo was raised to A(ru) from BBB+(ru), the agency said.

S&P noted that the upgrade reflects the company's improved financial profile following stronger-than-expected financial performance for 2004 and the nine months to September 2005 and a recent increase in regional electricity and heat tariffs.

The ratings remain constrained, however, by potential conflicts of interest of Irkutskenergo's key shareholders and risks surrounding the possible ownership unbundling of generation and distribution assets, the agency said.

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