S&P: Russian utilities unaffected

Standard & Poor's said that the electricity blackout in Moscow on May 25 has had no ratings impact on power companies Mosenergo (AO) (B-/positive/--), RAO UES of Russia (B+/stable/--; Russia national scale ruA+), and Federal Grid Co. of the Unified Energy System (FGC; B+/stable/--; Russia national scale ruA+).

S&P said it considers it unlikely that Mosenergo or Federal Grid Co. will be held responsible for the disruption, because it resulted from a breakdown in a substation owned by another company within the RAO UES group.

There is a risk of litigation claims on Mosenergo, and indirectly on RAO UES. Mosenergo could be exposed because the transfer of existing supply contracts from Mosenergo to the newly establish supply company has not yet been completed. This could impair its already weak liquidity, but this risk is not critical because current legislation limits compensation to property damages.

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