Research Update: France-Based AREVA Downgraded To 'BBB+' On Continued Weakened Profitability; Outlook Stable Jun 10
- ID: 1857784
- June 2010
- Standard & Poors
Depressed profitability at France-based nuclear services provider AREVA is being further strained by the recently announced additional provision of €400 million for the OL-3 Finnish reactor. We also think that profitability could deteriorate as a result of the dispute with Electricité de France regarding the commercial agreement with AREVA's George Besse nuclear enrichment plant (GB-I). We are therefore lowering the long and short-term corporate credit ratings on AREVA to 'BBB+/A-2' from 'A/A-1' and removing them from CreditWatch. The stable outlook reflects our view that AREVA is likely to be able to successfully execute the remaining asset disposal program and proposed capital increase, thus strengthening its balance sheet. On June 28, 2010, Standard & Poor's Ratings Services lowered its long- and...
Companies mentioned in this report are:
Action: Outlook: Stable
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. SHOW LESS READ MORE >