The ratings on French electricity incumbent Electricité de France (EDF) reflect the company's 'A+' stand-alone creditworthiness and a one-notch uplift for state support, given its very specific features, in particular its focus on nuclear energy. EDF's stand-alone credit quality is underpinned by its dominant position in the French market; low variable costs thanks to its focus on nuclear and hydro-electric power generation; substantial share of low-risk regulated activities; and the refocusing of its international operations on Western Europe. These strengths are offset by EDF's average financial profile, when taking into account its sizeable unfunded postretirement and nuclear liabilities. EDF's financial profile has nevertheless been boosted by the recently completed €6.35 billion capital increase and is expected to improve further, thanks
