Moody’s revises Tepco view to stable

Moody's Japan K.K. said it affirmed Tokyo Electric Power Co., Inc.’s (Tepco) Ba3 corporate family rating and Ba2 senior secured debt ratings

The outlook was revised to stable from negative.

Concurrently, the agency withdrew Tepco's B1 issuer rating, in line with its practice on other speculative-grade issuers.

"The change in outlook reflects Moody's view that Tepco's credit profile now shows a greater degree of stability, in view of increased visibility on the costs related to the accident at its Fukushima Daiichi nuclear power plant in March 2011; the effects of the implementation of the government's support scheme for such costs; and the support Tepco has been receiving from its relationship banks," Moody's vice president, senior analyst Motoki Yanase said in a news release.

"In addition, Moody's considers that Tepco's operations – despite the fact that its nuclear reactors are still inactive – has shown evidence of improvement that would warrant a slightly higher estimation of the underlying credit, government support aside."

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