Standard&Poor's today announced that its outlook on Electricité de France (EDF; AA+/Negative/A-1+) remains negative, following the publication of the company's results on March 28, 2002. The figures show that EDF is being affected by continued electricity-market deregulation and by the harsh conditions encountered in its South American subsidiaries. These elements, in conjunction with a significant increase of debt levels, have contributed to the weakening of EDF's debt-protection ratios. While the fall was expected owing to the announced acquisition policy, it is larger than expected and comes amid renewed discussions on a potential opening of its capital--and in the wake of recent decisions on liberalization of energy markets in Europe, which will entail a further opening of the French
