Standard & Poor has approved and withdrawn rating Gamma of "KEGOC" JCS on level Gamma-5+

/IRBIS, July 1, 2011/ - Governance Services Standard & Poor's June 30 announced the confirmation and the simultaneous withdrawal of the rating, "Analysis and evaluation of the effectiveness of corporate governance, accountability and management" (GAMMA) JSC "Kazakh company on Electricity Grid" (KEGOC) at the level of GAMMA-5 +. Company KEGOC, the system operator of the national electric power system of Kazakhstan, provides services for power transmission, technical control and organization of functioning of the balancing energy market. As indicated, the corporate governance score of GAMMA KEGOC was withdrawn at the initiative of Standard & Poor's in connection with the decision of Standard & Poor's to stop providing services to evaluate corporate governance on the methodology of GAMMA. However, Standard & Poor's will continue to evaluate corporate governance in credit analysis. "One of the most important positive characteristics of the corporate governance system is tuned KEGOC strategic planning process" - said analyst of Governance Services Catherine Marushkevich. It is noted that in recent years the practice of disclosure in KEGOC has improved significantly. In 2011, KEGOC published annual financial statements under IFRS in the middle of April - before, as in previous years, and opened the size of the individual remuneration of senior executives and board members. "However, we still note that the sole shareholder of KEGOC, Government of the Republic of Kazakhstan, in making corporate decisions can be subject to conflict of interest. In particular, despite the fact that by itself the prospect of" popular "IPO can have a positive impact the development of corporate governance practices in KEGOC, designated by the government's intention to sell shares at a discount to their fair value less attractive location for companies. Practically, this means attracting equity at an inflated price", - was stated in a message of S & P. GAMMA rating of the company KEGOC is the result of four component analysis with gradations are marks from 1 to 10: - Shareholders influence - 4+ - Shareholders rights - 5 - Transparency, audit and risk management - 6 - Efficiency of the Board of Directors, strategic process, motivation system - 5+ [2011-07-01]