Moody's Investors Service (Moody's) affirmed KEGOC's rating at Baa2, upgrading the outlook from stable to positive.

The positive outlook on KEGOC's rating is in line with the positive outlook on Kazakhstan's sovereign and Samruk-Kazyna's rating. It reflects the company's stable position in the current rating category. 

The rating action reflects an improvement in KEGOC's standalone assessment. The credit profile of the company takes into account its monopoly position as an operator of the national electricity infrastructure, which guarantees business stability. KEGOC's stable credit and liquidity indicators are noted, with virtually no currency risks, which is supported by a sufficiently favourable tariff setting mechanism ensuring full cost recovery, flexibility of the investment programme and historically conservative financial policy. 

Moody's expects KEGOC's debt coverage, as measured by funds from operations (FFO)/net debt, to remain at a very high level of above 55% during 2023 and 2024. 

KEGOC's net profit for the first 10 months of 2023 totalled KZT 32.7 billion, which is 41,6% higher than in the same period of 2022. This figure exceeds the level of forecasted net profit for 2023, which was expected to be KZT 31.5 billion.

One of the factors contributing to the strengthening of KEGOC's market position and revenue growth is the market reform that came into effect on 1 July 2023. The new market model of the Single Buyer and real-time balancing electricity market will increase transmission volumes and eliminate historical losses from market balancing operations.

Based on the results of the first half of 2023, KEGOC paid dividends to shareholders in the amount of KZT 20.2 billion or 87% of net profit. For the second half of the year, dividends are planned to be paid in the amount of KZT 20.2 billion. Thus, the dividend per common share will be about KZT 145 per ordinary share.