Bulletin: TEPCO Holdings? Operational Integrity Will Support Ratings After The Transfer Of Its Thermal Power Generation To JERA

TOKYO (S&P Global Ratings) April 1, 2019--Japan-based regulated electric utility group Tokyo Electric Power Company Holdings Inc. (TEPCO Holdings; BB+/Stable/B) is likely to maintain its overall business standing in the next two to three years even after today's transfer of its thermal power generation business to equity affiliate JERA Co. Inc. (A-/Stable/--), in S&P Global Ratings' view. We expect the TEPCO Holdings group's operations to remain intact in practice through the continuation of its quasi-vertically integrated business model. We also expect its business performance and key financial ratios to stay near current levels. This is because it can continue to exert some influence over important decisions at JERA, an electric power company, through its 50% stake and an equal number

...TOKYO (S&P Global Ratings) April 1, 2019--Japan-based regulated electric utility group Tokyo Electric Power Company Holdings Inc. (TEPCO Holdings; ##+/Stable/B) is likely to maintain its overall business standing in the next two to three years even after today's transfer of its thermal power generation business to equity affiliate JERA Co. Inc. (A-/Stable/--), in S&P Global Ratings' view. We expect the TEPCO Holdings group's operations to remain intact in practice through the continuation of its quasi-vertically integrated business model. We also expect its business performance and key financial ratios to stay near current levels. This is because it can continue to exert some influence over important decisions at JERA, an electric power company, through its 50% stake and an equal number of board seats as Chubu Electric Power Co. Inc., which holds the remaining 50% stake. In addition, TEPCO Holdings is likely to influence JERA's business operations because the group's retail company plans...

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