...Business Risk: Strong Financial Risk: Significant + One of the largest vertically integrated utilities in the world, with dominant positions in France and strong positions in the U.K. and Italy. + Significant exposure to European merchants power activities, which face tough operating conditions linked to market liberalization and a mainly fixed-cost nuclear and hydro asset base. + Relatively high contribution from domestic regulated earnings, notably through the full ownership of the French power distribution network. + Execution risks and negative track record associated with highly capital intensive nuclear new build projects. + Relatively high adjusted financial leverage with debt to EBITDA of about 4.5x, with substantial pensions and nuclear liabilities. + A sizable investment program combined with very long construction phases, resulting in high negative free operating cash flows (FOCF) after dividends. + Successful implementation of a plan to control debt through a capital increase,...
