Following the UK government’s approval of a new nuclear build in Somerset, Hinkley Point C, S&P Global Ratings has downgraded French energy company, Électricité de France’s (EDF) credit rating from ‘A’ to ‘A-’.
The cut considers the £18 billion nuclear project “complex” with high investments adding to the utility company’s already weak cash flow. The project also faces the same high risks as another EDF nuclear build, in Flamanville, France, which involves European Pressurised Reactor (EPR) technology and has been linked to a significant amount of material costs and delays.
However, EDF’s outlook remains stable due to a debt “remedy plan” set in partnership with the French government to alleviate the company’s high amounts of debt over the next two years. The company is also to benefit from nearly €1 billion from a 35% stake in partner China General Nuclear (CGN).
The credit downgrade can be read about in both the financial and environmental press, at Energy Live News, Blue & Green Tomorrow, Business Green (subscription required), City A.M., The Times, and Digital Look.