S&P affirms Mosenergo

Standard & Poor's said it affirmed the BB long-term corporate credit rating and ruAA national scale ratings on Mosenergo AO.

The ratings also were removed from CreditWatch, where they were placed with negative implications in December 2012.

The outlook is stable.

The affirmation follows a confirmation by Mosenergo's management that the company would not be involved in the potential acquisition of Moscow Integrated Power Co., S&P said.

The agency also said it assumes that Mosenergo's credit metrics, liquidity and debt-maturity profiles will remain commensurate with the ratings over the next two years.

If a transaction proceeded with Mosenergo acquiring Moscow Integrated Power from the city of Moscow, Mosenergo's financial metrics could have weakened, owing to new borrowings to finance the deal.

However, negotiations between the city and Mosenergo's ultimate parent Gazprom don't imply Mosenergo's involvement, S&P said, or the use of Mosenergo's funds or cash flows to finance the transaction.

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