Bulletin: Electricite de France S.A.'s 2022 Financials Are Set To Further Deteriorate

This report does not constitute a rating action. PARIS (S&P Global Ratings) March 15, 2022--S&P Global Ratings today said that Electricite de France S.A. ?s (EDF; BBB/Negative/A-2) financial position will further weaken in 2022 due to a larger EBITDA hit from regulatory measures related to France?s Regulated Access to Historic Nuclear Electricity (ARENH) scheme and lower nuclear output production compared with 2021, leaving minimal headroom at the current rating level. This deterioration is notably spurred by higher power prices since February, exacerbated by the Ukraine conflict. We now expect EDF?s 2022 EBITDA to be null from our previous expectation of €5.0 billion-€7.0 billion and total adjusted debt to surge to over €92 billion from €74 billion at year-end 2021. This

...PARIS (S&P Global Ratings) March 15, 2022--S&P Global Ratings today said that Electricite de France S.A.'s (EDF; ###/Negative/A-2) financial position will further weaken in 2022 due to a larger EBITDA hit from regulatory measures related to France's Regulated Access to Historic Nuclear Electricity (ARENH) scheme and lower nuclear output production compared with 2021, leaving minimal headroom at the current rating level. This deterioration is notably spurred by higher power prices since February, exacerbated by the Ukraine conflict. We now expect EDF's 2022 EBITDA to be null from our previous expectation of 5.0 billion-7.0 billion and total adjusted debt to surge to over 92 billion from 74 billion at year-end 2021. This is even after incorporating announced remedy measures, such as a 2.5 billion capital increase and additional asset disposals, which are still to materialize. On March 12, the French government published a decree in relation to the allocation of the additional 20 terawatt-hours...

Bulletin