CONSULTING

decides not to proceed with Hinkley.” 195 This is all the more remarkable as during the same week,
Jean-Bernard Levy, EDF chief executive told its shareholders that Hinkley was “essential”, adding:
“Without Hinkley Point, the group would have no credibility to reach new nuclear markets.” 196
During the year 2015, EDF’s company debt rose by nearly €3 billion (US$3.6 billion) to €37.4 billion
(US$40.9 billion). As EDF's credit-rating was downgraded, the debt load will likely increase further
as debt becomes more expensive.
Figure 20: EDF Share Price Development 2006–2016
EDF (FR) Share Price Development Since 2006
(in %)
22 November 2007: €86.45
200
150
Share Price
as of 2 January 2006:
€32.1
20 April 2010: €41.95
2 April 2014: €29.73
Share Price
as of 4 July 2016:
€11.25
100
50
0
-50
Percentage Change Since 2006
-100
Source: Yahoo Finances, July 2016 197
This is a similar view to S&P, which in May 2016 lowered its long-term corporate credit rating by
S&P to A from A+, which “reflects the increasing share of revenues that EDF derives from
unregulated activities following the partial liberalization of the French energy market. This comes
at a time of a sharp decrease in power prices.” 198 In June Fitch ratings also downgraded its
assessment of EDF from A to A-, one of the key reasons for this was “in view of further potential
195 Moody’s, “Electricite de France – update following recent downgrade to A2 negative”, Credit Opinion,
17 May 2016.
196 Emily Gosden, “Hinkley Point costs could rise to £21bn, EDF admits”, The Telegraph, 12 May 2016, see
http://www.telegraph.co.uk/business/2016/05/12/hinkley-point-costs-could-rise-to-21bn-edf-admits/, accessed
1 July 2016.
197 Data extracted from Yahoo Finance refers to EDF’s share value performance on the Paris Stock Market
(EDF.PA). Percentage changes are calculated on the basis of the closing price on 2 January 2006.
198 S&P, “France-Based Integrated Energy Company EDF Downgraded To ‘A/A-1’ On Weaker Business
Profile; Outlook Negative”, 13 May 2016.
Mycle Schneider, Antony Froggatt et al. 64 World Nuclear Industry Status Report 2016