S&P: Mosenergo on positive watch

Standard & Poor's said it placed its B long-term corporate credit rating and ruA- Russia national-scale rating on Mosenergo on CreditWatch with positive implications.

S&P said that this follows approval by Mosenergo's shareholders of an additional share issue in favor of OAO Gazprom (BBB/stable).

The CreditWatch placement reflects both potential improvement in Mosenergo's creditworthiness following the equity increase and the potential benefits of affiliation with Gazprom, which may gain a controlling stake in the company, the agency noted.

S&P said that the ratings on Mosenergo are supported by its strong competitive position in the relatively lucrative and growing, Moscow region, its diversified combined heat and power generation portfolio and technical limitations on competition from alternative power and heat producers.

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