Fitch downgrades EDF's rating to 'AA-'

Resumen de Prensa            Enervía, lunes, 24 mayo 2004

FUENTE: Platts


Fitch Ratings has downgraded Electricite de France's senior unsecured rating to "AA-" from "AAA," following the French Council of Ministers' decision to approve a draft law, which will change the status of EDF and Gaz de France, the ratings agency said Friday. The company's short-term rating is affirmed at "F1+." The draft law, which is expected to pass the parliament during the
summer of 2004, would change the status of EDF and GDF to SA corporate status from EPIC, Fitch said. Under the EPIC status, EDF's obligations, in Fitch's opinion, are guaranteed by the French state, as an EPIC cannot be insolvent. With the new status, EDF will be subject to normal corporate law, and this implicit government guarantee will cease. However, EDF will remain 100% state-owned immediately after the law is passed. The new ratings reflected the group's dominant position in its home market from which it derived 70% of its EBITDA (earnings before interest, tax, depreciation) during full year 2003, balanced by concerns over some of its international subsidiaries, leverage and pension commitments.