Creditreform Rating has confirmed the A- unsolicited corporate issuer rating of Électricité de France S.A. (EDF). The outlook has been changed to negative from stable. Relevant rating aspects are the Company´s strong integrated and diversified business model, as well as its good geographical diversification. EDF is of systemic importance for France as its main electric utility and operator of its transmission and distribution networks. In 2019, the Group recorded solid revenues and strong margins, partially benefiting from the environment of favorable energy prices. The considerable investment burden as well as construction delays and cost overruns regarding new nuclear business put pressure on our rating assessment. The French state owns 83.58% of the Company´s shares. We assume that the French government would be willing to support the Company in meeting any extraordinary financial shortfall. The main reasons for the negative outlook are the effects of the COVID-19 pandemic and the resulting overall economic slowdown. The announced expected decrease in the electricity output due to the adjustments in scheduled nuclear maintenance outages plan as well as the expected overall drop in electricity consumption could lead to a worsening of the Company´s earnings and liquidity, negatively affecting the Company´s financials.
Creditreform Rating has confirmed the unsolicited corporate rating of Électricité de France S.A. The rating has been reviewed on the basis of the current rating methodology for government related corporates.