The ratings on French electricity incumbent Electricité de France S.A. (EDF) are on CreditWatch with negative implications, where they were placed on Sept. 25, 2008, following EDF's cash offer for U.K.-based nuclear generator British Energy Group PLC (BE, BB/Watch Pos/--). Standard&Poor's Ratings Services does not expect a downgrade of EDF as a result of this acquisition to exceed one notch. The CreditWatch placement primarily reflects the acquisition's negative impact, if successful, on EDF's financial profile. In addition, the deal will dilute to some degree EDF's very strong business profile, given BE's poor operational track record. Still, BE would only represent about 6% of the enlarged group's EBITDA. Moreover, acquiring BE would strengthen EDF Energy PLC (A/Stable/A-1), EDF's U.K.
