Wednesday, December 21, 2016

EDF/CNP ASSURANCES : S&P puts note of the TEN under review … – Zonebourse.com


S&P announced place the note of the RTE, which manages the French power grid, under review (CreditWatch) with involvement negative pending details on his assignment by EDF. Last week, the electrician announced that it had reached an agreement with CNP Assurances and CDC for their yield of 49.9% of the share capital of its subsidiary RTE. The project is to create a joint venture in which EDF would retain 50.1% of the shares.

In a first step, EDF will transfer, before the end of the year, all of the securities of TEN of the new joint venture, partially finances the operation by external debt. It is on this point that Standard & Poor’s is particularly cautious, stating that it is not known for the moment, the level of debt that the company will have to assume. Even though TEN is already under the weight of debt deemed very high by the rating agency.

After the creation of the joint venture, EDF will transfer 49.9% to the Caisse des Dépôts and CNP Assurances. The realization of this second step is scheduled for the first semester of the year 2017, after approval of the competent authorities in the field of control of concentrations.

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