Bond Issues and Credit Ratings
BOND ISSUES
In 2012, four subsidiaries of the Company issued bonds totaling 21 billion rubles. The Company did not issue its bonds in the reporting period. Information about the bonds placed in 2012 is detailed below:
| Issue No. | Value (rubles in millions) | Placement Date | Interest Rate, % |
|---|---|---|---|
| LENENERGO (corporate bonds) | |||
| 4-04-00073-A | 3,000 | April 24, 2012 | 8.5 |
| MOESK (exchange-traded bonds) | |||
| 4B02-01-65116-D | 5,000 | September 21, 2012 | 8.8 |
| 4B02-02-65116-D | 5,000 | October 29, 2012 | 8.8 |
| IDGC of Centre (exchange-traded bonds) | |||
| 4B02-01-10214-A | 4,000 | October 17, 2012 | 8.95 |
| IDGC of Center and Volga Region | |||
| 4B02-01-12665-E | 4,000 | December 18, 2012 | 9.15 |
INFORMATION ON CREDIT RATINGS ASSIGNED IN 2012
- On November 29, 2012, Moody’s affirmed the Company’s Ba1 rating (developing outlook).
- On January 12, 2012, Standard & Poor’s assigned a BB- rating to MOESK.
- On October 12, 2012, with the Company’s direct involvement, Moody’s assigned a Ba2 rating to three subsidiaries, namely IDGC of Volga, IDGC of Center and Volga Region, and IDGC of Urals.
Having a stable credit rating enables the Company and its subsidiaries to be increasingly attractive to investors and borrow on more favorable terms. The credit ratings of the Company’s subsidiaries are shown below:
| Subsidiary | Moody’s Credit Rating | Standard & Poor’s Credit Rating |
|---|---|---|
| LENENERGO | Ba2 | N/A |
| MOESK | Ba2 | BB |
| IDGC of Centre | N/A | BB |
| IDGC of Center and Volga Region | Ba2 | N/A |
| IDGC of Urals | Ba2 | N/A |
| IDGC of Volga | Ba2 | N/A |