Research Update: Energy Co. Electricite de France Outlook Revised To Stable On Supportive Financial Policy Moves; Affirmed At 'A-/A-2'

During the presentation of its 2018 full-year results, French power company Electricite de France (EDF) announced a scrip dividend program for the next three years; a €2 billion-€3 billion disposal program, on top of the already-achieved €10 billion; and, more importantly, stronger signs of progress on regulation of its French nuclear fleet and the group reorganization, as requested by the French state. In addition, we note the more favorable market power price environment, which supports EDF's earnings growth and limits cash burn in the coming two years. EDF's reinforced commitment to its stated financial policy and to maintaining the rating are also credit positive. We are revising our outlook on EDF to stable from negative, and affirming our 'A-/A-2' ratings.

...+ During the presentation of its 2018 full-year results, French power company Electricite de France (EDF) announced a scrip dividend program for the next three years; a 2 billion-3 billion disposal program, on top of the already-achieved 10 billion; and, more importantly, stronger signs of progress on regulation of its French nuclear fleet and the group reorganization, as requested by the French state. + In addition, we note the more favorable market power price environment, which supports EDF's earnings growth and limits cash burn in the coming two years. + EDF's reinforced commitment to its stated financial policy and to maintaining the rating are also credit positive. + We are revising our outlook on EDF to stable from negative, and affirming our 'A-/A-2' ratings. + We also revised to stable from negative our outlooks on EDF's U.K. subsidiaries EDF Energy PLC and EDF Energy Customers PLC. See the ratings list for more details. + The stable outlook reflects our expectation of a contained...

Research Update