Research Update: Leading French Nuclear Services Group AREVA On CreditWatch Negative Following Cut In Cash Flow Guidance For 2014-2016 Sep 14
- Language: English
- Published: September 2014
- Region: France
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...
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Action: Outlook: Stable
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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 >