Moodys.com
Close
Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

Terms of One-Time Website Use

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's downgrades EDF to Aa3; British Energy upgraded to Baa3, still on review for upgrade

14 Jan 2009

Approximately EUR18 billion of rated debt securities affected

London, 14 January 2009 -- Moody's Investors Service has today downgraded to Aa3 from Aa1 the long-term senior unsecured debt and issuer ratings of Electricite de France SA (EDF). At the same time, Moody's confirmed the ratings of some of EDF's subsidiaries (see list below), including the A3 senior unsecured debt and issuer ratings of EDF Energy plc and EDF Trading Limited. The outlook on all the ratings is stable. Moody's also upgraded to Baa3 from Ba3 the guaranteed debt rating of British Energy Bond Finance plc (formerly British Energy Holdings plc), and kept the rating on review for upgrade pending clarification of legal and capital structure considerations. The Ba2 corporate family rating of British Energy Group plc (British Energy) was withdrawn, since this type of rating is not usually assigned to companies with an investment-grade profile.

Today's rating actions follow the announcement last week that EDF's GBP12.5 billion acquisition of British Energy, made through its wholly-owned subsidiary, Lake Acquisitions Limited, had become effective. They also factor in that EDF and Centrica (rated A3/Prime-2) are continuing their discussions regarding Centrica's option to acquire 25% of Lake Acquisitions, and EDF's recent agreement to acquire 49.99% of Constellation Energy Group's (CEG, rated Baa3, under review for downgrade) nuclear assets for USD4.5 billion, which remains subject to regulatory approval. These rating actions conclude the review initiated by Moody's in September 2008 when EDF's offer for British Energy was announced.

"The downgrade of EDF's ratings to Aa3 from Aa1 is prompted by the increase in debt resulting from the estimated EUR13.2 billion used to fund its acquisitions," explains Niel Bisset, a Senior Vice President in Moody's Infrastructure Finance Group. EDF remains about 85% owned by the French state and accordingly EDF's ratings continue to benefit from a two-notch uplift to the Aa3 senior unsecured rating.

"The downgrade also takes into account an expected increase in leverage over the next few years given the prospect of negative free cash flow as EDF carries out a substantial capital expenditure programme," adds Mr. Bisset. In Moody's view, EDF's on-balance sheet debt will rise significantly over 2009-10 from the EUR18.2 billion reported at June 2008 (approximately EUR46 billion on an adjusted basis), due to both the acquisition debt and capital expenditures that are not expected to generate meaningful returns in the short term. Compared with 20% achieved in 2007 and Moody's current guidance of retained cash flow (RCF)/net debt in excess of 20%, Moody's estimates that EDF's RCF/net debt ratio is likely to decline to the low teens in 2009 and 2010 before recovering towards the mid-teens range from 2011. The stable outlook assumes that, given its low business risk profile, EDF will manage its leverage profile such that it will not deteriorate beyond current expectations.

"Moody's recognises that both the British Energy and CEG acquisitions are fully consistent with EDF's strategy and position EDF well for the development of New Nuclear Build (NNB) in the UK and US," says Mr. Bisset. The acquisition of British Energy also supports the integrated business model of EDF Energy, its UK subsidiary. However, Moody's notes that British Energy's relatively weak recent operational record, its ageing nuclear fleet and the increased proportion of unregulated business within EDF could pose negative business risks for EDF. "Overall, Moody's believes the transactions will slightly increase the business risk profile of the group, although not enough to change its current low assessment," says Mr. Bisset. "For the longer term, both acquisitions highlight the importance to EDF's strategy of developing its global NNB capability, which implies high up-front investment and very long-term value creation with execution risks."

Although details are yet to be finalised, Moody's confirmation of EDF Energy's A3 rating assumes that the position of the UK sub-group within the UK energy sector should benefit overall from moving to long from short generation. With regard to its positioning within the EDF group, Moody's considers that EDF's commitment to EDF Energy as an integrated business has been underscored by its significant investment to acquire British Energy and that it remains appropriate to incorporate an element of support in the assigned A3 rating.

Moody's confirmation of EDF Trading's A3 rating reflects its central role and responsibility for EDF's wholesale market activity. Although the rating of EDF as support provider has weakened as a result of the British Energy acquisition, Moody's believes this is offset by the fact that EDF Trading has become more integrated within the group and has steadily extended its responsibility for asset optimisation, as well hedging EDF's earnings.

The downgrade of EDF's ratings to Aa3 from Aa1 results from a change of its Baseline Credit Assessment (BCA) to 6 (equivalent to an A2 rating) from 4 (equivalent to a Aa3 rating), due to the higher leverage arising from its acquisitions. As a Government related issuer (GRI) EDF's ratings incorporate other GRI input factors, including high support and medium dependence, assumptions which Moody's maintains unchanged following the acquisition of British Energy, and which result in the two-notch differential between the BCA and the Aa3 senior unsecured rating. Moody's considers the likelihood that support would be forthcoming for EDF to be at least as great as it is for any French corporate that is not wholly-owned by the state.

Today's rating actions led to the following downgrades:

-EDF SA: senior unsecured debt and issuer ratings, to Aa3 from Aa1

The following ratings were confirmed:

-EDF Energy plc: A3 senior unsecured debt ratings

-EDF Energy Networks (LPN) plc: A2/Prime-1 senior unsecured debt and issuer ratings

-EDF Energy Networks (EPN) plc: A2/Prime-1 senior unsecured debt and issuer ratings

-EDF Energy Networks (SPN) plc: A3 senior unsecured debt and issuer ratings

-EDF Trading Limited: A3 senior unsecured issuer rating

-EDF Energy (South East) plc: A3 senior unsecured issuer rating

-EDF Energy Customers plc: A3 senior unsecured issuer rating

-SEEBOARD Energy Ltd: A3 senior unsecured issuer rating

The following ratings were not on review and were affirmed:

-EDF SA: the P-1 short-term rating

-EDF Energy plc: the P-2 short-term rating

-EDF Energy Networks (SPN) plc: the P-2 short-term rating

-EDF Energy (South East) plc: the P-2 short-term rating

The following rating was upgraded and kept on review for possible upgrade:

-British Energy Bond Finance plc (formerly British Energy Holdings plc): the guaranteed debt rating, to Baa3 from Ba3

The previous rating action on EDF was implemented on 25 September 2008, when Moody's placed EDF's Aa1 long-term senior unsecured debt and issuer ratings on review for possible downgrade. The previous rating action on British Energy was implemented on the same date, when Moody's initiated a review for possible upgrade of the company's Ba2 corporate family and probability of default ratings as well as of the Ba3 guaranteed debt rating of British Energy Bond Finance plc (formerly British Energy Holdings plc).

The principal methodologies used in rating these entities were The Application of Joint Default Analysis to Government Related Issuers, published in April 2005 and the Rating Methodology: Global Regulated Electric Utilities, published in March 2005, which can be found at www.moodys.com in the Credit Policy & Methodologies directory, in the Ratings Methodologies sub-directory. Other methodologies and factors that may have been considered in the process of rating this issuer can also be found in the Credit Policy & Methodologies directory.

Electricite de France SA is an integrated provider of electricity generation, transmission, distribution, and supply services, and the leader in its domestic French market. The company also has a major presence in the international markets through ownership interests in power utility operations in Europe (primarily Italy, UK and Germany) and globally. In the nine months ended 30 September 2008, EDF recorded revenues of EUR46 billion.

EDF Energy plc is an integrated electricity generation, distribution and supply company, and is the largest UK regulated network owner. The company has approximately 5.5 million customer accounts and nearly 5,000 MW of generation. In the year to YE2007, the company reported revenues of GBP6 billion and EBITDA of GBP0.9 billion.

British Energy Group plc is the largest power generator in the UK, delivering around 20% of UK electricity demand from around 10.6 GW of installed capacity (83% of which is nuclear). In the six months ended 30 September 2008, British Energy reported total output of 22.7 TWh, revenues of GBP1,281 million and adjusted EBITDA of GBP257 million.

London
Monica Merli
Managing Director
Infrastructure Finance Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

London
Niel Bisset
Senior Vice President
Infrastructure Finance Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454

Moody's downgrades EDF to Aa3; British Energy upgraded to Baa3, still on review for upgrade
No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

​​​​
Moodys.com