Nuclear: why Standard and Poor’s downgraded Areva … – FranceTV info

Why she notes the Areva were degraded?

“This deterioration follows the announcement made on December 17 by Areva, that he expects new significant losses in its activities reactors and services, and additional losses in its renewable activities being abandoned, “said S & amp; P (Standard and Poor’s) stating that the prospect of note was being considered.

This uncertainty on the outlook “reflects the fact that we can raise or lower the rating of Areva depending on the details of the financing plan supported by the State and 2015 results which will be announced in January or February 2016 “, said the rating agency. The short-term rating of the group, however, remains unchanged B.

The agency has already lowered two notches early March the long-term rating of the nuclear age group , the making then move from BB + to BB-. With a B + rating, investment in Areva is considered highly speculative.

Areva, which is preparing to sell a large part of his division to EDF reactors, has several sites in Burgundy.

What are the possible solutions to resolve the crisis?

The nuclear group is in very big trouble. Areva expected to survive to sell a stake of at least 51% of its business to the French electrician reactors EDF, an operation which should result early 2016.

Its subsidiary Areva TA, in charge of production and maintenance of propulsion systems French nuclear buildings, including the aircraft carrier Charles de Gaulle, should also come under the fold of the French state, which already owns 86.5% of the nuclear group. “If the state support and financing measures are clearly stated on the horizon of February 2016, we will likely lower the rating of one or more notches,” warns S & amp; P

<. h2 class="title_blue"> What other difficulties faced by Areva?

Other risk factors cited by the agency on the fate of Areva include approval by European authorities injection capital from the French State in Areva, the risk in case of the EPR reactor being built in Finland and analysis initiated by the Nuclear Safety Authority (ASN) on the construction of the Flamanville EPR (Manche) .

The concern is growing, especially in Burgundy where the group has several nuclear sites in Saône-et-Loire. Areva employs 2,300 employees at sites of Chalon / Saint-Marcel (which provides heavy equipment for nuclear power plants) and Creusot Forge (which specializes in the manufacture of forgings, castings and machined steel).
A social plan was launched by Areva: 2700 jobs will be cut in France, including more than 200 in Saône-et-Loire

Are there a risk. ” liquidation “of Areva

For the CGT union NP Saint-Marcel facing the group’s financial situation is deteriorating,” government and leadership have as the only solution currently only announced sacrifices and setbacks important social employees: POS (voluntary redundancy plan), agreed to lower the pension and healthcare costs, will of introducing flexibility, etc. “

Furthermore, the CGT adds, . “nobody can ignore the financial trouble looming in September 2016 and becomes now too close to not require the use of transitional funding scheme to avoid a failure of Areva at dusk the bond maturity. Otherwise the risk of “a liquidation” Areva is a non-zero risk … “concludes the union.