On Aug. 19, 2003, Standard&Poor's Ratings Services lowered its long-term corporate credit rating on French state-owned electricity utility Electricité de France (EDF) to 'AA-' from 'AA'. At the same time, Standard&Poor's affirmed its 'A-1+' short-term corporate credit rating on the company. The outlook remains negative. The downgrade reflects Standard&Poor's expectation that a material share (in comparison with EDF's debt level) of the company's very significant unfunded pension liabilities will be incurred by EDF itself, while the majority will nonetheless be transferred to third parties. Large off-balance-sheet commitments in connection with Italenergia Bis (the parent of Italian electricity utility Edison SpA, BBB/Stable/A-3) and Germany-based electricity utility Energie Baden Wuerttemberg AG (EnBW, A/Stable/A-1) also contributed to
