Fitch Ratings said Tuesday it lowered the rating of long-term issuer EDF from A to A- due primarily to lower electricity prices. The prospect of the new rating is stable, said the rating agency in a statement, adding that the subordinated notes were lowered from BBB + to BBB.
Speaking of falling electricity prices and the erosion of business volumes on the French market, Fitch added that “if capital expenditures are being reduced, we believe that the limited flexibility and significant investment is needed to modernize the domestic nuclear plants”.
The agency added that given the important commitments to come, the main challenge EDF will reduce its “free cash flow” negative.
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