OREANDA-NEWS. October 18, 2007. Moody's Investors Service has assigned a long-term Corporate Family Rating of B2 with a stable outlook to DTEK Holding Ltd (DTEK). The rating reflects the strong position of DTEK as the only privately owned vertically integrated electricity company in Ukraine as well as the company’s high business risk profile, the relatively young regulatory environment and significant state influence over the coal and energy markets.

According to the rating agency, the vertical structure of DTEK, together with the centralised geographical positioning of its mining, coal processing, and electricity generation and distribution assets, enables the company to control the quality and security of the whole production chain and successfully manage efficiency and productivity gains. The rating also takes account of the solid financial performance of DTEK as a result of strong generation of cash flow and debt coverage metrics, reflecting improvement in operating efficiency measures, supported by the trend of growing prices in both the coal and electricity markets.

It is the second international rating assigned to the company. Earlier, Fitch Ratings has already assigned DTEK Holdings Limited (DTEK) a Long-term Issuer Default rating (IDR) of ‘B+’, a Short-term IDR of ‘B’ and a National Long-term ‘AA-(AA minus) (Ukr)’ rating. The outlooks for the Long-term IDR and National Long-term rating are stable.

‘Obtaining Long-term Credit Ratings is the first step for DTEK on its way to international markets, - noted Yuriy Ryzhenkov, the Director of Finance of the company. – It provides ironclad guarantees for clients and peace of mind for potential investors, once again confirming the stability and reliability of our company’.

Donbass Fuel-Energy Company (DTEK) is a vertical integration of companies, which creates an efficient production chain from coal-mining (‘Pavlogradugol’ OJSC, ‘Komsomolets Donbassa Mine’ OJSC) to electricity generation (‘Vostokenergo’ Ltd) and supply (‘PES-Energougol’ OJSC, ‘Service-Invest’ Ltd.).