The ratings on French electricity incumbent Electricité de France S.A. (EDF) reflect its stand-alone creditworthiness--which would ensure an 'A+' rating--and a one-notch uplift for state support, given the group's primary focus on nuclear power generation and the entailed significant operational risks and decommissioning liabilities. EDF's stand-alone credit quality reflects the significant contribution to earnings, especially in France, of regulated businesses; its leading position by far in the only moderately competitive French generation and supply market, underpinned by its efficient nuclear generation fleet; the refocusing of its international operations on Western Europe; and its superior free operating cash flow generation. These strengths are offset to a degree by EDF's financial profile which, although improving, remains moderate given sizable unfunded postretirement and
