A vertically integrated utility, which generates robust cash flows thanks to its dominant position in the French electricity market; Low electricity production costs in Europe, compared with those of peers, essentially owing to a large, homogeneous set of nuclear- and hydro- generation plants; and Growing diversity as a result of the company's refocus on Western European markets. Large unfunded pension liabilities and significant exposure to nuclear facilities' end-of-cycle costs; Substantial off-balance-sheet commitments in relation to Italy-based Italenergia Bis (IEB) and Germany-based Energie Baden Wuerttemberg AG (EnBW; A/Stable/A-1); and Potentially weaker support from the state, as evidenced by recurring discussions about partial privatization of the company. The ratings on French state-owned integrated electric utility Electricité de France (EDF) are based on
