European rating agency. Objective, transparent, independent.
European rating agency. Objective, transparent, independent.

Électricité de France S.A.

Rating History

Rating Watch Outlook Decision Date Action Validity Date Maximum Validity
A- Outlook NEG 22.03.2021 25.03.2021
A- Outlook NEG 29.04.2020 11.05.2020
A- Outlook STA 24.04.2017 25.04.2017
A- Outlook STA 09.12.2016 16.12.2016

News

  • 25.03.2021
    Creditreform Rating has confirmed the A- unsolicited corporate issuer rating of Électricité de France S.A. (EDF). The outlook remains negative. The macroeconomic developments, reflecting low market prices for electricity and gas as well as a decline in demand for electricity, led to a reduction in power generation capacity and thus significantly burdened the Group's operating business in the 2020 financial year. Despite the deterioration of individual financial ratios, the overall result of the financial analysis remained stable, which is a decisive factor in our rating assessment. In addition, EDF Group's close relationship to the state (the French state's stake in EDF is 83.68%) and the high proportion of regulated business have a stabilizing effect on the rating. We assume a high willingness of the French government to offer extraordinary financial support to the Company if necessary. The negative outlook primarily reflects the ongoing negative impact of the COVID-19 pandemic and the overall economically challenging market situation, which could noticeably burden the Group's revenue and earnings development as well as its operational internal financial strength in the current financial year 2021. Especially against the background of the high fixed costs and the considerable investment needs, additional pressure on the Group´s cash flow, as well as an increase in indebtedness cannot be ruled out in our view.
  • 11.05.2020
    Creditreform Rating has confirmed the A- unsolicited corporate issuer rating of Électricité de France S.A. (EDF). The outlook has been changed to negative from stable. Relevant rating aspects are the Company´s strong integrated and diversified business model, as well as its good geographical diversification. EDF is of systemic importance for France as its main electric utility and operator of its transmission and distribution networks. In 2019, the Group recorded solid revenues and strong margins, partially benefiting from the environment of favorable energy prices. The considerable investment burden as well as construction delays and cost overruns regarding new nuclear business put pressure on our rating assessment. The French state owns 83.58% of the Company´s shares. We assume that the French government would be willing to support the Company in meeting any extraordinary financial shortfall. The main reasons for the negative outlook are the effects of the COVID-19 pandemic and the resulting overall economic slowdown. The announced expected decrease in the electricity output due to the adjustments in scheduled nuclear maintenance outages plan as well as the expected overall drop in electricity consumption could lead to a worsening of the Company´s earnings and liquidity, negatively affecting the Company´s financials.
  • 25.04.2017
    Creditreform Rating has confirmed the unsolicited corporate rating of Électricité de France S.A. The rating has been reviewed on the basis of the current rating methodology for government related corporates.