Research Update: Electricite de France S.A. On CreditWatch Negative After Sharp Revision To Nuclear Output Amid COVID-19 Outbreak

Electricite de France S.A. (EDF) has lowered significantly its French nuclear output for 2020-2022 because of lengthening maintenance outages amid the COVID-19 pandemic and anticipated lower power demand. The magnitude of the cut and the prolonged timeframe associated are deeply below our expectations and reflects increased operating weaknesses. We are placing our 'A-' long-term issuer credit, senior unsecured, and junior unsecured bond ratings on CreditWatch with negative implications, reflecting the sharp deterioration of the operating environment and credit metrics following significant pressure on earnings prospects. We are also placing our ratings on EDF's U.K. subsidiaries EDF Energy PLC and EDF Energy Customers PLC on CreditWatch negative, while our ratings on Edison are unaffected. We plan to resolve the CreditWatch placement

...- Electricite de France S.A. (EDF) has lowered significantly its French nuclear output for 2020-2022 because of lengthening maintenance outages amid the COVID-19 pandemic and anticipated lower power demand. - The magnitude of the cut and the prolonged timeframe associated are deeply below our expectations and reflects increased operating weaknesses. - We are placing our 'A-' long-term issuer credit, senior unsecured, and junior unsecured bond ratings on CreditWatch with negative implications, reflecting the sharp deterioration of the operating environment and credit metrics following significant pressure on earnings prospects. - We are also placing our ratings on EDF's U.K. subsidiaries EDF Energy PLC and EDF Energy Customers PLC on CreditWatch negative, while our ratings on Edison are unaffected. - We plan to resolve the CreditWatch placement after we assess the action plan of the group and the French state, EDF's majority shareholder, to protect its balance sheet....

Research Update