CONSULTING

in the evolution of AREVA’s share price, which, as of early July 2016, is 96 percent lower than it was
in June 2008 (see Figure 26).
The nuclear industry is Russia is largely state owned and operated. However, Rosatom State Atomic
Energy Corporation of Russia is the 100 percent owner of the joint stock company JSC
Atomenergoprom, which is rated by the major credit agencies. In January 2015, S&B downgraded
the company to BB+ (“junk”). In April 2016, it was given a negative outlook by Moody’s, primarily
in response to the sovereign credit ratings of the Russian Federation as a whole, but the rating
company warned that “the lack of adequate liquidity could put pressure on the company's
rating.” 232 This is particularly important given that Rosatom stated that it is currently building
nine reactors in Russia and an additional 11 overseas (with said to a total of 29 reactors in the
portfolio). They further stated that the overseas order portfolio is worth US$101.4 billion. 233
Table 5: Standard and Poor’s Long-Term Credit Rating of Major Nuclear Vendors
Company
Atomenergoprom
(Rosatom)
AREVA
Latest
Rating
January
2015
May
2016
Outlook
2016
May
2015
May
2014
June
2013
June
2012
June
2011
April
2010 2009
Negative BB+ BB+ BBB- BBB BBB BBB- BBB- BBB-
Developing B+ BB- BBB- BBB- BBB- BBB+ BBB+ A
Sources: Standard & Poor’s, Companies’ Annual Reports
Toshiba purchased Westinghouse from British Nuclear Fuels Limited in 2006 for US$5.4 billion. In
April 2016, it announced that it expected to have US$2.3 billion in impairment losses, in recognition
that it had overpaid for the company and falling revenues. Toshiba’s current fiscal year estimate for
sales revenue from the nuclear firm is US$3.1 billion in 2015/6 — US$540 million below what it
was in November 2015 and US$180 million below what the company projected in March 2016. 234
Even before the latest financial situation had come to light, Toshiba admitted that it was looking for
a partner so that it would reduce it 87 percent ownership of Westinghouse. 235
Atomic Energy of Canada Limited, is one of the world’s largest nuclear constructors, with sales
across the world, including in Europe, Asia and the Americas. However, AECL, is a federal Crown
corporation and so is not listed on stock exchanges or given rating by the Agencies.
232 Moody’s, “Moody's concludes ratings reviews on 12 Russian utilities and infrastructure GRI and
subsidiaries”, 27 April 2016.
233 Rosatom, “Annual Public Report 2014”, see
http://www.rosatom.ru/upload/iblock/661/661e5b99fa4ad0eca00bfde76055b503.pdf, accessed 13 June 2016.
234 Power Source, “Westinghouse worth $2.3 billion less, Toshiba says”, Pittsburgh Post-Gazette,
26 April 2016, see http://powersource.post-gazette.com/powersource/companies/2016/04/26/Westinghousevalue-now-2-3-billion-less-Toshiba-says/stories/201604260158,
accessed 30 May 2016.
235 Reuters, “Amid accounting probe, Toshiba may sell Westinghouse shares: sources”, 9 July 2015, see
http://www.reuters.com/article/us-toshiba-accounting-divestiture-idUSKCN0PI2UA20150709, accessed 1 July 2016.
Mycle Schneider, Antony Froggatt et al. 73 World Nuclear Industry Status Report 2016