Dominant, largely protected market position for electricity in France, and leading positions in the competitive U.K. and Italian power markets. A very high share of domestic earnings stemming from low risk electricity network activities and stable regulated nuclear output and electricity supply, leading to fairly high predictability in cash flows. Political risks, notably on tariffs and uncertainties surrounding reforms of France's energy policies, and deteriorating market and regulatory conditions in Europe. Substantial construction and execution risks linked to the £16 billion new nuclear build projects in the U.K. Stretched credit metrics, with massive debt-like obligations. Substantial nuclear maintenance costs and highly capital-intensive new nuclear build projects and upgrades, leading to negative discretionary cash flow on the back of heavy investments
