The ratings on state-owned Electricité de France are based on the company's strong position in the domestic electricity market; its fairly good financial profile; and the actions that it is taking, through its major acquisition program in Europe, to counterbalance the gradual liberalization of the domestic electricity market. These strengths are offset by EDF's weakening credit measures; increasing presence in more competitive, liberalized European markets such as the U.K.; and exposure to uncertain nuclear facilities' end-of-cycle costs. The ratings still incorporate a degree of sovereign support, notably with respect to EDF's considerable unfunded pension obligations. EDF--the largest electric utility in the world, with a consolidated installed capacity of 119 gigawatts (GW) and 43 million customers--benefits from 90% market share in
