PARIS, June 19 (Reuters) – The acquisition of a majority interest in the business of Areva nuclear reactors should be neutral for the credit rating of EDF, said the agency Standard & amp; Poor’s in a study released Friday.
The proposed transaction is expected to represent an amount “quite significant” but manageable for the electrician public, in particular as it could be financed by the sale of assets, felt in this note Pierre Georges, an analyst at S & amp;. P
Areva should eventually benefit from its side for better alignment with its key customer, improved competitiveness and reduced exposure new reactor construction, as well as capital structure and a strengthened liquidity, according to S & amp; P
The group’s credit profile is expected to remain under pressure due to heavy. debt burden, negative cash flows and risks EPR under construction at Flamanville (Manche) and Finland (OL3)
S & amp;. P says it will review the credit ratings . Areva and EDF once the discussions between the two groups have progressed and Areva has presented its financing plan, expected July 30
EDF is rated A + by S & amp; P, with a negative outlook, while the agency lowered early March by two notches the rating of long-term debt of Areva, to “BB +” to “BB -”.
The state has validated early June the proposed takeover by EDF activity nuclear reactors Areva (Areva NP) and given one month to two groups to reach an agreement. He also announced plans to recapitalize Areva “prudent investor at the necessary height.”
According to several sources familiar with the matter, the indicative offer by EDF May 22 values Areva NP slightly more than two billion euros, while the company is worth $ 2.7 billion in Areva accounts.
Areva reported on June 10 that he asked EDF to raise its bid and commit to certain projects that are likely to weigh on the future of its supplier, such as that of OL3.
The agency Moody’s has estimated its side early June that the acquisition of a majority stake in Areva NP could have a negative impact on the credit rating of EDF
The statement from S & amp; P (English).
http: // bit. ly / 1CguzCr (Benjamin Mallet; Editing by Jean-Michel Belot)
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