Rating agency Expert RA Kazakhstan affirms creditworthiness rating of SevKazEnergo (Kazakhstan) and reliability rating of bonds KZ2C0Y10D695 (KZ2C00001519, SKENb1) at level А+

/LLP "Rating agency "Expert RA Kazakhstan", translation by KASE, July 7, 12/ - Rating agency "Expert RA Kazakhstan" affirmed the creditworthiness rating of JSC "SEVKAZENERGO" at level А+ (very high creditworthiness level) and reliability rating of bonds (NIN - KZ2C0Y10D695) at level А+ (very high reliability level). Factors positively influencing the rating of JSC "SEVKAZENERGO" are as follows: (ROA - 5.34%, ROE - 9.59%); an increase in equity (equity increase in 2008-2011 made up 72%); a considerable increase in assets (asserts increase from 2008 to 2011 - 78%) and good rates of business activities (accounts payable turnover period - 23 days, accounts receivable - 70 days, assets - 1,043 days). Besides, JSC "SEVKAZENERGO" currently implements an investment program for reconstruction, modernization and technical re-equipment costing KZT23.4 bn, which positively impacts the rating. Another positive factor is participation of European Bank of Reconstruction and Development and Islamic Infrastructure Fund in the capital of the parent company - "Central Asian Electric Energy Corporation" - that improves chances of attracting funds, which in particular, is expressed in the fact of receiving borrowings on favorable conditions. "The company takes a monopolistic position on the markets of electric and heat energy of North Kazakhstan region, selling also to other regions of Kazakhstan - that ensures a large selling volume. These circumstances allow the company to maintain a high rating", - points out expert of ratings unit of "Expert RA Kazakhstan" Vasiliy Kalabin. Among factors restricting the level of rating of JSC "SEVKAZENERGO" there are decreasing liquidity ratios (urgent liquidity ratio in 2011 - 0.76, current liquidity ratio - 0.96, absolute liquidity ratio - 0.2) and a low diversification of credit liabilities (share of the largest creditor - JSC SO "Sberbank" - in the total volume of debt - 62%). Besides, financing of the investment program leads to a high debt load, which also restricts the level of rating (ratio of debt to revenue - 0.84, debt to gross income - 2.16). Major activities of JSC "SEVKAZENERGO" include production of electric and heat energy in North Kazakhstan region. Production facilities of the Company are situated in Petropavlovsk. The Company's revenue in 2011 made up KZT15.9 bn, asset as at the end of 2011 - KZT46 bn, equity - KZT25.6 bn. Press service of "Expert RA Kazakhstan" Assel Omarova tel. +7 (727) 344-12-12 ext. 4820 mobile +7 707 117 00 96 E-mail: omarova@raexpert.kz [2012-08-10]