On January 13, 2021, Russia's Analytical Credit Rating Agency (ACRA) affirmed the credit rating of PJSC ROSSETI at 'AAA'(RU), with a stable outlook, the rating of the company's bonds at 'AAA'(RU), the rating agency informed.
The credit rating of PJSC ROSSETI (hereinafter, the Company, or Rosseti) has been affirmed on par with the financial obligations of the Russian Government due to the Company's very high systemic importance for the Russian economy and the very high state influence on the Company.
Rosseti's aa- standalone creditworthiness assessment (SCA) is due to the Company's monopolistic positions in the management of the Russian power grid complex, very high profitability, low leverage, and very high liquidity. The Company's SCA is constrained by, among other things, substantial capital expenditures, ACRA notes.
The Company is a power grid operator in Russia. It consolidates 17 power grid companies: PJSC FCG UES (managing high-voltage power transmission lines in Russia) and 16 subsidiaries that manage local power grids across Russia. The Company is a natural power grid monopoly whose tariffs are regulated by the government. The Company also manages six utilities companies. The state, represented by Federal Agency for State Property Management (Rosimuschestvo), is the controlling shareholder with an 88% stake.
In 2020, the functions of the sole executive body of FGC UES were transferred to PJSC ROSSETI. At the same time, the shareholder agreement between PJSC ROSSETI and Rosimushchestvo on the procedure for managing and voting using shares in PJSC FGC UES remained in force.
