S&P downgrades Areva

Standard & Poor’s said it lowered to BB+ from BBB- the long-term issue rating on the unsecured bonds and €1.25 billion revolving credit facility issued by Areva.

The agency also said it assigned a recovery rating of 3 to the bonds and the revolver, reflecting 50% to 70% expected default recovery.

The BB+ rating is in line with the corporate credit rating on Areva, S&P said.

The bonds and the revolver are unsecured and rank pari passu in a recovery analysis, along with other unsecured bilateral credit lines, the agency said.

S&P said it values the business as a going concern based on its market position.

At the same time, the agency said it believes that the value of the company’s assets provides insight into its likely value at the point of default.

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