Fitch removes watch from EDF

Fitch Ratings said it affirmed Electricite de France's issuer default rating at BBB+, removed the rating watch negative and assigned a negative outlook.

“The rating affirmation mainly reflects EDF's commitment to restore a reported net debt/EBITDA at about 3x by 2023. This is consistent with Fitch's revised funds from operations (FFO) net leverage sensitivity for a bbb stand-alone credit profile (SCP) at 4x. We expect performance to normalize in 2023, since our base case assumes no further state intervention and no necessity to buy back electricity. We have taken a cautious approach on prices and production (305TWh) for 2023, and we see further outages as the key risks for our base case, driving the negative outlook,” Fitch said in a press release.

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