The rating agency Moody’s announced on Wednesday that the degradation of the note of the French energy group EDF, which goes from A2 to A3 for senior debt long-term and Prime-1 to Prime-2 debt in the short term. These notes are accompanied with a stable outlook. In a statement, the agency justified its decision by the risk carried by the project, Hinkley Point, which has a negative impact on the credit profile of the group.
Moody’s believes that “the scale and complexity of the project,” poses the same risks as those that have resulted in delays and additional costs on the building of the EPR of Flamanville or Olkiluoto in Finland. During the “very long construction phase,” the financial balance sheet of the group will be affected by the investments required for the construction site, which will reach “2 billion” per year and will generate “no return of cash”, according to the agency. Without the support provided to the project Hinkley Point by the French State, majority shareholder in EDF, the note from the electrician would be Baa2, or two notches lower than the current note A3.
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” Hinkley may cause deterioration of the profile of EDF (Moody’s)
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