Fitch downgrades EDF, notes

Fitch Ratings said it downgraded EDF SA's long-term issuer default rating and senior unsecured rating to A from A+ and subordinated notes to BBB+ from A-.

The short-term issuer default rating was affirmed at F1.

The agency also downgraded EDF Energy Nuclear Generation Group Ltd.'s long-term issuer default rating to A from A+.

The outlooks are stable.

Fitch said the downgrade reflects that EDF's earnings growth is insufficient to offset the impact of sizeable negative free cash flow on the debt position and financial gearing. The agency also expects that the tariff progression for household customers in France will continue to be slow and that competition for commercial customers will put pressure on the group's margins.

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