S&P upgrades Orano

S&P said it raised its long-term issuer credit rating on Orano to BB+ from BB.

The outlook is stable.

The agency also raised its ratings on Orano's senior unsecured bonds to BB+ from BB. Although S&P said it expects substantial recovery (70%-90%; rounded estimate 85%) in the event of a default, the recovery rating is capped at 3 due to the bonds' unsecured nature and issuance by a company rated in the BB category.

S&P said the upgrade follows the finalization of Orano's restructuring, with the sale of Areva NP's assets to Electricité de France in December 2017, the completion of two equity increases in February 2018, cumulative cost savings of about €480 million yearly since 2014 and the company's track record of operating as a stand-alone entity since mid-2017.

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