The ratings on Electricité de France (EDF) are based on its strong position in its domestic electricity market, fairly strong financial profile, and the steps the company is taking through its major acquisition program to maintain its position as the leading European electricity utility (2000 turnover of €34.4 billion and electricity output of 466 GWh). The ratings also incorporate strong sovereign support, notably with respect to EDF's huge unfunded pension obligations. These strengths are offset by the company's exposure to electricity market liberalization throughout Europe, as well as to nuclear facilities' end-of-cycle costs. The assumed sovereign support is in keeping with the utility's 100% state-ownership. Standard&Poor's believes that the much-speculated partial privatization of EDF is unlikely to materialize
