The ratings on French state-owned integrated electric utility Electricité de France (EDF) are based on the company's still-dominant position in the French market, refocused strategy on Western Europe, and fairly good financial profile. These strengths are offset by exposure to large unfunded pension liabilities, uncertain end-of-cycle costs of nuclear facilities, and the large off-balance-sheet commitments in relation to Italenergia Bis (IEB) and Energie Baden Wuerttemberg AG (EnBW; A/Stable/A-1). EDF is the world's largest electric utility, with a consolidated installed capacity of 121 gigawatts (GW) and 47 million customers. It benefits from an overwhelmingly dominant position in the French market, which produces robust cash flows that underpin the company's fairly good financials. Also, EDF's relatively stable French, German, and U.K. operations
