(AOF) – Standard & Poor’s lowered to B+ to B his note on Areva and the future independent entity NewCo by reason of the conditions imposed by the european Commission to allow their recapitalisation by the French State. The rating agency cites in particular the need for the nuclear group to carry out checks on the vessel of the EPR of Flamanville before eligible to receive public funds, “a condition that we had not anticipated”, grants to S&P. The agency said that its outlook on Areva and NewCo is “in development”.
This means that S&P could raise its ratings on the two companies if the capital increases provided for shall be in place by mid-2017.
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The large european energy companies face a difficult environment, marked by the collapse of prices on the wholesale markets and a situation of overcapacity. The utilities must also contend with the appearance of competitors from other sectors of activity, such as those from the “smart building” (building technical management associated with a set of services). In France, EDF displays financial difficulties, huge investment needs to maintain its nuclear fleet and the voltages on the supply. In Germany, E. ON and RWE are experiencing poor financial results. Mergers and acquisitions are increasing in the energy sector. In the second quarter of 2016, their value rose by 42% compared to 2015. The companies operating in the renewable energy remain very attractive. Acquisitions, targeted and of medium size, building in specific activities also continue. We also note a growing interest of buyers from asia to the european assets of the sector.
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