S&P upgrades Areva, revolver to B+

S&P said it raised the long-term corporate credit rating on Areva to B+ from B.

The outlook remains developing.

The agency also upgraded the ratings on Areva’s €1.25 billion revolving credit facility to B+ from B. The recovery rating is unchanged at 3, indicating an expectation of meaningful recovery (50%-70%; rounded estimate 60%), in the event of a default.

S&P said the upgrade is mainly driven by its view that there is an increased likelihood that Areva’s planned €2 billion capital increase will take place this summer, because it thinks that the two conditions set by the European Commission (EC) to authorize the capital increase are now likely to be fully met.

That said, the agency understands that the completion of the restructuring may take more time as some important approvals and processes are needed over the coming quarters.

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