Moody's reviews EDF for downgrade

Moody's Investors Service said it placed on review for downgrade the A3 senior unsecured ratings of Electricite de France (EDF) and the Baa3 ratings of its perpetual junior subordinated notes.

Moody's also placed on review for downgrade the Baa2 long-term issuer rating of EDF's subsidiaries EDF Trading Ltd., EDF Energy Holdings Ltd. and Edison SpA, which incorporate support from their ultimate parent.

Concurrently, Moody's has affirmed the group's Prime-2 short-term ratings.

The rating action was prompted by the Jan. 13 announcement by the Government of France (Aa2 stable) of measures to limit the increase in electricity tariffs for 2022 and EDF's reduction of its nuclear output estimate for the year, announced on the same date, Moody’s said.

The rating review will consider the impact of the planned measures on EDF's financial profile in the context of the lower output, mitigating measures that the company may pursue and any additional support that government may provide.

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