S&P Has appropriated joint-stock company "the Kazakhstan company on management of electric networks" (KEGOC) rating GAMMA-5

/IRBIS, March 16, 10/ - Service of ratings of corporate governance Standard and Poor's the Kazakhstan company on management of electric networks "(KEGOC) rating GAMMA at level"GAMMA-5"has informed on joint-stock company assignment", is specified in message S&P from March, 15th. As it is specified, rating GAMMA replaces with itself appropriated earlier (in January, 2009) a corporate governance rating (РКУ). In connection with assignment of the company of rating GAMMA maintenance РКУ KEGOC has been stopped. At the moment of transition to new rating GAMMA the corporate governance rating has been confirmed at level "РКУ-5". "The company has shown a number of improvements in the field of a corporate governance in 2009 which include expansion of powers of Board of directors KEGOC and working out of long-term strategy of the company. However a number of lacks will neutralise action of positive changes. So, the quantity of internal sessions of committee on audit has essentially decreased in 2009 that is estimated negatively from the point of view of supervision over auditor process. Long decision-making process at the parent level, the limited independence of the company in strategy definition, and also lacks of practice of disclosing of the information limit rating level at present " - are given in the message of a word of an analyst of Service of ratings of corporate governance S&P of Elena Pastuhovoj. How it is specified, rating GAMMA of company KEGOC - Result of an estimation on four components of the analysis - with gradation of an estimation from 1 to 10: - Influence of shareholders - 4 +; - Influence of shareholders - 4 +; - The rights of shareholders - 5; - A transparency, audit and management of risks - 5 +; - Efficiency of Board of directors, strategic process, motivation system - 5. As specifies S&P, strengths of practice of corporate governance KEGOC are: - The role of the shareholder as a whole is positive, to what financial support, and also readiness of the shareholder to apply the advanced international practice of a corporate governance in the company testifies. Direct powers of the shareholder are not excessive. - Work of Board of directors is adjusted. Council holds regular sessions on which open discussion of questions is encouraged. - The full reporting on IFRS is published. The company shows high level of disclosing of the information on a corporate governance. - Subordination of Department of internal audit corresponds to the advanced practice. Operational procedures of Department as a whole are effective. - Good professional structure of Board of directors. The structure of committees is estimated as effective. - In the company there is a control system of risks. However analysts S&P mark a number of lacks of system of a corporate governance of the company: - Independence KEGOC in the strategic relation is limited by dependence of the company on injections of the shareholder in its capital. - Decision-making process at level of the parent company in certain cases is long that can negatively affect operational decisions KEGOC. - Independent directors make minority in Board of directors, therefore have the limited possibilities for balancing of influence of the shareholder. Recent easing of the control over intragroup transactions limits a role of Board of directors and, in particular, independent directors. - Periodicity of internal sessions of Committee on audit in 2009 has decreased that limits efficiency of supervision of audit. - Lacks of terms of disclosing of the information, and also of disclosing of the current information remain. Inconsistency in information disclosing is observed. - politicized decisions on compensation of management of the company. The government of Kazakhstan keeps restriction on size of compensation of heads of the largest state companies and now forbids payment of bonuses. Decisions of the shareholder on the statement of the annual financial reporting and payment of dividends have been accepted with delay in 2009. Meetings of shareholders are not spent now in view of existing structure of the property. Ratings GAMMA are appropriated in the countries concerning emerging markets, first of all in the countries BRICK (Brazil, Russia, India, China). [2010-03-16]