Moody’s changes E.ON outlook to negative

Moody's Investors Service said it changed the outlook on the Baa1 senior unsecured ratings of E.ON SE and its guaranteed subsidiaries, E.ON International Finance BV and E.ON Beteiligungen GmbH, to negative from stable.

Concurrently, the agency affirmed the group's Baa1 long-term and Prime-2 short-term ratings.

This action follows E.ON’s Sept. 9 announcement that, following the planned split of the group into two separate publicly listed companies, the surviving E.ON will retain the nuclear generation assets and associated decommissioning liabilities.

The split was first announced in November 2014, when E.ON said that its power generation, global trading commodities and exploration and production businesses would be separated into a new company subsequently named Uniper. Under the new proposals, the German nuclear assets and associated liabilities will not be allocated to Uniper but will remain within E.ON and be managed by a subsidiary, called PreussenElektra.

The change is in response to proposed legislation that would likely mean E.ON would have continuing responsibility for nuclear decommissioning liabilities even if it had transferred the assets to Uniper as originally envisaged.

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