OREANDA-NEWS. On March 25, 2015 Moody's Investors Service confirmed corporate family rating and probability of default rating at Ba2/Ba2-PD (Outlook Negative).

Confirmation of ratings reflects high probability of support from state-owned parent company (Rosseti) and Moody's opinion that IDGC of Urals will maintain adequate operating and financial performance and liquidity in the next 12-18 months cutting expenses against reduced demand for the services. Negative Outlook reflects the same outlook for the state of Russian economy that would negatively affect domestic energy market.

What could change the ratings up/down:

The outlook will be changed to stable if macroeconomic conditions in Russia is to stabilize, operating and financial metrics and liquidity are not materially deteriorated as well as Rosseti's support remains unchanged.

Downward pressure on ratings will develop if there are severe deterioration of the operating environment caused by a deeper and more protracted decline in economic activities in Russia than previously anticipated, weakening support from Rosseti as well as Company's failure to manage the investment program in line with the tariff decisions.