Fitch gives RusHydro BBB-, AA+(rus)

Fitch Ratings said it assigned Federal Hydrogeneration Co. HydroOGK (RusHydro) a long-term foreign currency issuer default rating of BBB- with stable outlook and a national rating of AA+(rus).

"RusHydro's rating reflects the company's improving financial position, majority state ownership and productive relationship with key decision making state agencies", said Anton Krawchenko, associate director in Fitch's energy and utilities group.

Leverage and coverage ratios are expected to improve substantially over 2006 levels, the agency said, adding that as a low-cost producer, RusHydro is expected to see significant increases in its operating margins to at least 60% on average, as the proportion of power volume sold on the unregulated market increases.

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