S&P lowers Orano view to negative

S&P said it revised Orano's outlook to negative from stable and affirmed its BB+ issuer credit rating.

The company recently published weak results for the rating in 2018 with an anticipated decline in EBITDA and an increase in its asset retirement obligation liabilities, S&P said.

While the agency said it continues to view the company's ability to generate positive free cash flow in 2018 and in the coming years as a key consideration for the current rating, the volatile nature of the nuclear liabilities may hinder its ability to de-leverage.

The outlook revision reflects the possibility that S&P will lower the rating by one notch over the coming 12- to 24-months if Orano experiences weaker-than expected EBITDA with an increase in its overall liabilities, the agency explained.

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