S&P lifts Tepco view to stable

Standard & Poor's said it revised to stable from negative the outlook on the B+ long-term corporate credit rating on Tokyo Electric Power Co. Inc. (Tepco).

The agency also said it affirmed all of the company's ratings.

The agency said it updated its view that the government of Japan will continue to provide stable support for the company based on government approval of Tepco's revised restructuring plan in January 2014.

The outlook revision also reflects a view that risk of further deterioration in Tepco's cash-flow adequacy is likely to continue to decrease over the next 12 months because of the benefits of an increase in electricity rates in September 2012 and significant cost reductions, S&P said.

The company's financial performance is considered under pressure until it restarts one of its Kashiwazaki-Kariwa nuclear reactors, the agency said. That is why its stand-alone credit profile is CCC+.

The company's business environment remains severe and a huge burden of compensation and clean-up costs continues to strongly pressure its liquidity and financial risk profile, S&P said.

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