Publication date: 21.05.07
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STANDARD & POOR\\'S ASSIGNS OGK-4 GOVERNANCE SCORE

As of today, Standard & Poor’s (S&P) Governance Services has assigned its corporate governance score (CGS) of 'CGS-4' to Generation Company Four of the Wholesale Power Market (OGK-4). OGK-4 was also assigned a score of 'CGS-4.4' on Standard & Poor's Russia national scale.

 

The overall CGS on OGK-4 is the result of four component scores on the global and Russia national scales of 1 (low) to 10 (high). The global scale score is shown first below, and the Russia national scale second:

 

- Ownership structure and external influences: 4+/4.5;

- Shareholder rights and stakeholder relations: 5+/5.9;

- Transparency, disclosure, and audit: 4+/4.7;

- Board structure and effectiveness: 3+/3.8.

 

"The CGS reflects strong management commitment to strengthening underdeveloped governance procedures and functions," said Julia Kochetygova, director of Standard & Poor's Governance Services. "The score is constrained by the fact that OGK-4's corporate governance is almost exclusively performed at the level of the parent company, RAO UES of Russia, and that OGK-4's board is passive."

 

"OGK-4 is active in working toward improving its corporate governance. Our goal is to comply with the best international standards," said Deputy Director General for Corporate Policy of OGK-4 Sergey Zhizhoma.