Energy Co. Electricite de France Outlook Revised To Negative On Lower 2018 EBITDA Guidance; 'A-/A-2' Ratings Affirmed

Electricite de France (EDF) has revised downward its EBITDA guidance for 2018, and while the revision is largely due to one-offs, we now foresee uncertainty in the improvement of EDF's credit metrics. We note that this is partly offset by debt reduction achieved by the group earlier this year, and that recent improvement in power prices may improve the group's cash flows from 2019. Consequently, we are revising our outlook on EDF to negative from stable, and affirming our 'A-/A-2' ratings on the company. The negative outlook reflects the weaker-than-expected recovery in EBITDA next year, resulting in prolonged low headroom in credit metrics over 2017-2018, as well as our increased concern of upward trending adjusted debt over 2018-2020. PARIS (S&P

...+ Electricite de France (EDF) has revised downward its EBITDA guidance for 2018, and while the revision is largely due to one-offs, we now foresee uncertainty in the improvement of EDF's credit metrics. + We note that this is partly offset by debt reduction achieved by the group earlier this year, and that recent improvement in power prices may improve the group's cash flows from 2019. + Consequently, we are revising our outlook on EDF to negative from stable, and affirming our 'A-/A-2' ratings on the company. + The negative outlook reflects the weaker-than-expected recovery in EBITDA next year, resulting in prolonged low headroom in credit metrics over 2017-2018, as well as our increased concern of upward trending adjusted debt over 2018-2020. PARIS (S&P Global Ratings) Nov. 20, 2017--S&P Global Ratings today revised its outlook on French integrated energy company Electricite de France S.A. (EDF) to negative from stable. We affirmed our 'A-' long-term and 'A-2' short-term corporate credit...

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