S&P lifts Tepco view to positive

S&P said it revised the outlook to positive from stable on the long-term corporate credit rating on Tokyo Electric Power Co. Holdings Inc. (Tepco Holdings).

The agency also said it affirmed the BB long-term corporate credit rating and B short-term corporate credit and commercial-paper program ratings on Tepco Holdings.

S&P also said it affirmed the BB+ rating on senior secured bonds issued by the former Tokyo Electric Power Co. Inc. (Tepco).

The outlook revision reflects a view that the group has a good chance of improving its funding stability further given its growing, the agency said.

The outlook revision also considers a view that a restart of the Kashiwazaki-Kariwa nuclear reactors remains critical for material improvement of Tepco's credit quality, S&P said.

The agency also said continued cost reductions are more likely to help the company sustain relatively stable profit and cash flow in the next year or two.

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