S&P downgrades Areva

Standard & Poor’s said it lowered the long-term corporate credit rating on Areva to BB- from BB+.

The outlook is developing.

The agency also said it lowered the senior unsecured debt ratings by two notches to BB- from BB+. The 3 recovery rating on this debt is unchanged, indicating 50% to 70% expected default recovery.

S&P also said it affirmed the company’s B short-term corporate credit rating.

The action reflects the downward revision of Areva’s stand-alone credit profile to B- from B+, the agency said, due to the worsening of its net debt to €5.8 billion versus a forecast of €5.2 billion.

As a result, 2014 credit metrics are extremely weak, S&P said.

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