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Research Update: France-Based AREVA Downgraded To 'BBB+' On Continued Weakened Profitability; Outlook Stable Jun 10 Product Image

Research Update: France-Based AREVA Downgraded To 'BBB+' On Continued Weakened Profitability; Outlook Stable Jun 10

  • ID: 1857784
  • June 2010
  • Standard & Poors

Abstract
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:
- AREVA

Action: Downgraded
Action: Outlook: Stable

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