The ratings on state-owned Electricité de France (EDF) are based on its strong position in the domestic electricity market, fairly good 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 terawatt hours). The ratings also incorporate strong sovereign support, notably with respect to EDF's huge unfunded pension obligations. These strengths are mitigated by the company's exposure to electricity-market liberalization throughout Europe, as well as to nuclear facilities' end-of-cycle costs. EDF's status as an Etablissement Public à Caractère Industriel et Commercial, which entitles it to the ultimate guarantee from the Republic of France (AAA/Stable/A-1+), is likely
