TEPCO Holdings Upgraded To 'BB' On Stabilized Earnings Prospects, Outlook Stable; 'BB+' Senior Secured Bonds Affirmed

We believe stable LNG prices and ongoing cost reductions should help TEPCO Holdings continue to generate solid profit with reduced downside risk in fiscal 2017. We also think a TEPCO reform committee proposal made public in December 2016 has clarified the framework under which the government can expand support to help TEPCO Holdings deal with damage compensation and cleanup and decommissioning costs related to the Fukushima nuclear disaster. We are raising our long-term corporate credit ratings on TEPCO Holdings one notch to 'BB' and are affirming our 'BB+' long-term senior secured debt ratings and our 'B' short-term ratings on the company. The outlook on the long-term corporate credit ratings is stable, reflecting our view that despite reduced downside risk the

...+ We believe stable LNG prices and ongoing cost reductions should help TEPCO Holdings continue to generate solid profit with reduced downside risk in fiscal 2017. + We also think a TEPCO reform committee proposal made public in December 2016 has clarified the framework under which the government can expand support to help TEPCO Holdings deal with damage compensation and cleanup and decommissioning costs related to the Fukushima nuclear disaster. + We are raising our long-term corporate credit ratings on TEPCO Holdings one notch to '##' and are affirming our '##+' long-term senior secured debt ratings and our 'B' short-term ratings on the company. + The outlook on the long-term corporate credit ratings is stable, reflecting our view that despite reduced downside risk the company's profitability is not likely to improve and stabilize significantly in the next year or two, with weak prospects of a resumption of operations at the company's Kashiwazaki-Kariwa nuclear reactors. TOKYO (S&P Global...

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