Moody’s lowers EDF Trading to Baa2

Moody's Investors Service said it downgraded the issuer rating of EDF Trading Ltd. to Baa2 from Baa1.

The outlook is negative.

This action concludes the rating review initiated on Feb. 13 and was driven by the downgrade of Electricite de France SA's (EDF) issuer and senior unsecured ratings to A2 from A1 on May 12.

Moody’s said EDF Trading’s Baa2 rating is linked to that of EDF, reflecting its strategic importance as EDF's trading arm and its significant integration into EDF, as evidenced by the French group's close oversight of the company's trading activities, risk management and finances, as well as the funding and liquidity support provided.

The rating differential between EDF Trading and EDF reflects that EDF Trading’s counterparty trading obligations are not guaranteed by EDF.

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