Moody’s assigns Baa3 to EDF notes

Moody’s Investors Service said it assigned a Baa3 long-term rating to the reset perpetual subordinated notes to be issued by Electricite de France. The issuance amount is expected to be €1.5 billion, but the execution is subject to market conditions.

The Baa3 rating is a notch lower than EDF’s baa2 stand-alone baseline credit assessment and three notches lower than EDF’s A3 senior unsecured rating.

The rating reflects the notes are perpetual, deeply subordinated and that EDF can opt to defer coupons on a cumulative basis, Moody’s said.

The outlook is negative

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