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 reviews for downgrade Aa1 ratings of EDF; places Ba2 ratings of British Energy on review for upgrade

25 Sep 2008
Moody's reviews for downgrade Aa1 ratings of EDF; places Ba2 ratings of British Energy on review for upgrade

Approximately EUR 14 billion of debt securities affected

London, 25 September 2008 -- Moody's Investors Service placed on review for possible downgrade the Aa1 long-term senior unsecured debt and issuer ratings of Electricite de France SA (EDF, the Group), as well as the ratings of certain of its subsidiaries, including the A3 senior unsecured debt and issuer ratings of EDF Energy plc and EDF Trading Limited, which incorporate a degree of support from their positioning within the EDF Group. The short-term debt and issuer ratings of EDF (at Prime-1) and EDF Energy plc (at Prime-2) were affirmed. At the same time, Moody's placed on review for possible upgrade the Ba2 corporate family and probability of default ratings of British Energy Group plc (British Energy), and the Ba3 guaranteed debt rating of British Energy Bond Finance plc (formerly British Energy Holdings plc).

The rating actions follow the announcement that the boards of EDF and British Energy have agreed on the terms of the recommended offers to be made by EDF, through its wholly-owned subsidiary Lake Acquisitions Limited, for the entire issued and to be issued share capital of British Energy. The offers, which include a cash offer and a partial CVR alternative, value British Energy at approximately GBP12.5 billion. The transaction is expected to become effective in the last quarter of 2008, or early 2009, subject to certain conditions including required thresholds for shareholder acceptances, and approval by the European Commission and UK Competition Commission. EDF and Centrica (rated A3/Prime-2 by Moody's) are in discussions in relation to an option for Centrica to acquire 25% of Lake Acquisitions. Moody's notes that although there is no certainty that such an agreement will be reached, EDF's willingness to proceed with the acquisition of British Energy is in no way dependent on reaching such an agreement.

The following ratings were placed on review for possible downgrade:

EDF SA -- the Aa1 senior unsecured debt and issuer ratings

EDF Energy plc -- the A3 senior unsecured debt ratings

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

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

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

EDF Trading Limited - the A3 senior unsecured issuer rating

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

EDF Energy Customers plc- the A3 senior unsecured issuer rating

SEEBOARD Energy Ltd -- the A3 senior unsecured issuer rating

The following ratings were affirmed:

EDF SA -- the Prime-1 senior unsecured short-term debt and issuer ratings

EDF Energy plc -- the Prime-2 senior unsecured short-term debt rating

EDF Energy Networks (SPN) plc -- the Prime-2 senior unsecured short-term debt rating

EDF Energy (South East) plc -- the Prime-2 senior unsecured short-term issuer rating

The following ratings were placed on review for possible upgrade:

British Energy Group plc -- the Ba2 corporate family and probability of default ratings

British Energy Bond Finance plc (formerly British Energy Holdings plc) -- the Ba3 guaranteed debt rating

The review for possible downgrade of EDF's Aa1 ratings reflects the negative pressure exerted by the planned acquisition on EDF's Baseline Credit Assessment (BCA) of 4 (equivalent to a Aa3 rating). While recognising the potential benefits and strategic rationale of the acquisition, these are offset, in Moody's view, by additional business and operational risks, as well as the negative impact on EDF's financial profile of the debt required to fund it.

Moody's says the planned transaction is in line with EDF's ambition to be at the forefront of the global nuclear revival, and leaves it well placed to participate in New Nuclear Build in the UK. It will also strengthen the Group's position within the UK energy sector by transforming EDF Energy plc's hitherto short generation position, and securing its access to power during a period of possible pressure on generation capacity.

The review for downgrade is prompted nevertheless by the scale of the transaction and its possible impact on EDF's business risk profile, currently considered low. The review also reflects Moody's view that additional debt incurred, combined with limited net incremental cash flow generation after financing costs, is likely to be reflected in a weakening of the Group's financial risk profile. In the event that the acquisition were to complete as planned, EDF's credit metrics are likely to decline to levels inconsistent with a BCA of 4, even if Centrica were to acquire a 25% stake in Lake Acquisitions. Moody's estimates, for example, that on the basis of current operating performance expectations, there is a risk that the additional borrowing would be reflected in EDF's RCF/net debt declining to less than 20%, the current guidance level for its BCA of 4 given a low business risk profile.

Moody's says that the review process will evaluate the impact of the proposed acquisition on the Group's business risk profile, including in the shorter-term its plans for managing its increased position in UK power generation and the operational risks associated with running British Energy's relatively old nuclear reactors, most of which are AGRs. It will also factor in the longer-term implications of the substantial investment which will be required in New Nuclear Build in the UK.

As part of its review of EDF's financial profile, Moody's will incorporate the possible stake sale to Centrica, any land or plant sales potentially required as remedies by the competition authorities, as well as expected future capital investment requirements. It will also consider the impact of the acquisition, if any, on the structure and financing of the Group's UK activities, including any potential implications for the EDF Energy plc sub-group. Finally, the review will take account of the integration and execution risks associated with an acquisition of this size.

Moody's adds that the review for upgrade of British Energy's Ba2 ratings is prompted by the potential improvement in British Energy's business risk profile through its position within EDF which should broaden its access to markets, finance and engineering expertise. The rating review will take account of EDF's plans for the future capital structure and financing of British Energy, as well as for investment both in the existing fleet and New Nuclear Build.

In two related releases, Moody's has commented on Centrica's discussions with EDF, and affirmed its Baa3 ratings of Sutton Bridge Financing.

Electricite de France SA is an integrated provider of electricity generation, transmission, distribution, and supply services, leader, by far, 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 six months ended 30 June 2008 it recorded revenues of EUR32 billion and EBITDA of EUR9 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 three months ended 30 June 08, British Energy reported total output of 11.4 TWh, revenues of GBP629 million and EBITDA of GBP129 million.

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

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

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