S&P: TVO on negative watch

S&P said it placed its BB+ long-term corporate credit ratings on Teollisuuden Voima Oyj (TVO) on CreditWatch with negative implications and affirmed its B short-term corporate rating.

The agency also placed on CreditWatch negative the BB+ issue rating on the company’s €1.3 million revolving credit facility. The recovery rating is unchanged at 4, indicating an expectation of average (30%-50%; rounded estimate 30%) recovery in the event of payment default.

“The CreditWatch placement follows TVO's announcement that its Olkiluoto 3 European pressurized reactor project is facing a delay of five months, which, in our view, slightly increases project costs and postpones further the start of the company's deleveraging path,” S&P said in a news release.

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