Electricite de France S.A.

100%-owned FLA-3 in France, which is close to being commissioned. Two potential reactors at the U.K.-based Sizewell C project (SZC, 49.4%-owned at year-end 2023). In case of a final investment decision, we expect EDF will reduce its total direct financial involvement to an equity stake below 20.0% and deconsolidate it. Two EPRs under construction at Hinkley Point C (HPC) in the U.K. (67.7%-owned at year-end 2023). They are severely beyond planned costing and commissioning dates, which were deferred in January 2024 by three years to 2030. Six 100%-owned reactors to be built in France, for commissioning from 2035 (NNF program). The positive outlook reflects upgrade potential over the next 12-24 months, based on a combination of the following assumptions: More

...Nuclear operations continue to drive our view of EDF's stand-alone credit profile (SACP) due to risks for newbuilds. In our view, EDF has largely addressed stress corrosion issues at its domestic nuclear operations. The company's swift action remedied the severe issues that had heavily contributed to unplanned outages and substantial negative EBITDA in 2022. Despite persisting concerns on the company's aging fleet and uncertain prospects for a sustainable recovery beyond 350 terawatt hours (TWh)--representing approximately 65% of its 62 gigawatt (GW) capacity--EDF's power generation has significantly exceeded our base case overall since April 2023. This caused consolidated EBITDA to overshoot considerably. EBITDA, which reached a record high in 2023, helped reduce leverage and will likely remain high over the coming few years. Last year's robust EBITDA, supported by a recovery in power generation and sustained market prices, far exceeded our expectations and enabled EDF to reduce S&P Global...

Full Report