GDF Suez group rating likely to be one notch lower than GdF rating - Moody's |
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Wed, 17 Oct 2007 11:47
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MUMBAI (Thomson Financial) - Moody's Investors Service said the rating of the combined Gaz de France-Suez group will most probably be one notch below the present GdF rating, given that Suez SA is to be absorbed by Gaz de France SA.Moody's has an 'Aa1' rating on GdF which is under review for downgrade and an 'A2' rating on Suez which is under review for upgrade.The ratings agency, however said it is unlikely to change its current assumptions on government support and dependence for GdF despite the expected decrease in the government's stake in the combined entity to 36 pct from the current 80 pct.Moody's said the ratings on the two companies and Suez's Belgian subsidiary Electrabel will remain under review given the remaining steps that still need to be taken before extraordinary general meetings of GdF and Suez can take place to formally approve the merger, and the absence of full information on the legal and organizational structure of the combined entity, post transaction.The ratings agency notes that GDF Suez's industrial strategy will be supported by a capital expenditure programme of 10 bln per annum, on an average, for the period 2008-2010, 75 pct of which will be development capex and the rest will be maintenance capex.TFN.newsdesk@thomson.comran/aka/jroCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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