Research Update: AREVA 'A-1' Short-Term Rating Stays On CreditWatch Negative; Increased Likelihood Of Downgrade Apr 09

Standard & Poors, April 2009

Abstract
On April 1, 2009, Standard & Poor's Ratings Services' 'A-1' short-term corporate credit rating on French nuclear services provider AREVA remained on CreditWatch with negative implications after higher-than-anticipated cash flow deterioration in second-half 2008 linked to the troubled Finnish OL3 new nuclear build project and pending AREVA's buyout of Siemens' stake in AREVA NP. The ratings were placed on CreditWatch on Jan. 27, 2009, following the announcement by Siemens AG (AA-/Negative/A-1+) to exercise its put option for the sale of 34% stake in AREVA NP, AREVA's reactor subsidiary. Following a review of AREVA's 2008 results, we believe the risk of downgrade of AREVA's short-term 'A-1' rating to 'A-2' is now high. This follows the severe deterioration of AREVA's credit metrics...

Companies mentioned in this report are: AREVA
Action: CreditWatch Update

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.

AREVA

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