OREANDA-NEWS. Standard & Poor's Ratings Services said today it assigned its 'ruA+' Russia national scale rating to the proposed Russian ruble (RUR) 6 billion ($223 million) series 4 senior unsecured bonds, due 2011, to be issued by Federal Grid Co. of the Unified Energy System (FGC; B+/Positive/--; Russia national scale ruA+), Russia's national electricity transmission grid operator.

FGC plans to use the proceeds to partially fund its investment program. The coupon payment rate will be determined at the placement auction on Oct. 12, 2006.

The Russia national scale rating on the bonds is the same as that on FGC.

The ratings on FGC are constrained by the ratings on its parent, RAO UES of Russia (B+/Developing/--; Russia national scale ruA+), which has a lower stand-alone credit quality from which FGC is not fully ring-fenced.