The French Green-Socialist Electoral Pact Could Have Adverse Credit Implications For Energy Companies EDF And AREVA Nov 11
- Language: English
- Published: November 2011
- 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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