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 its leading position by far in the only moderately competitive French generation and supply market, underpinned by its focus on nuclear generation; its ability to benefit from any further liberalizing of the French market, as low regulated supply prices currently constrain its profitability; the significant contribution to earnings, especially in France, of regulated businesses; and its superior free operating cash flow generation, which will, however, decline as a result of the
