EDF downgraded on Hinkley Point risks in 'massive red flag to government'
Moody's has downgraded EDF debt because of Hinkley Point
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Your support makes all the difference.Greenpeace has called a rating agency's decision to downgrade EDF debt a "massive red flat warning" to the UK Government over the Hinkley Point nuclear plant.
Moody's has downgraded EDF debt because of Hinkley Point, pushing some of the French energy company's riskiest debt close to junk, meaning that traders are advised not to invest in it.
It said the negative outlook reflects the fact that the Hinkley plan does not address the fact that power prices at current levels do not cover the required investments enough to make money off them.
EDF had not accounted for the incremental risks associated with Hinkley Point C, Moody's said.
Standard and Poor's warned in October that it may also have to lower EDF's rating if it presses ahead with the plant.
"If investing in Hinkley is not a rational commercial decision for private investors then any French government financing would be illegal state aid," John Sauven, Greenpeace executive director, said.
“Moody's downgrading of EDF's debt is the latest in a long line of massive red flag warnings the UK government has received over the Hinkley nuclear project. Hinkley power station must not become ‘too big to fail’ because of politicians’ egos that are too big to back down," Sauven added.
Plans for Hinkley Point were thrown into disarray in April when EDF said it planned to delay the building of the £18 billion nuclear plant possibly until 2017.
The delay sparked fresh calls from Greenpeace for the UK Government to look for renewable sources of energy.
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