i-Nuclear update: UK Urenco share sale could hit ratings, S&P says

i-NUCLEAR

UK Urenco share sale could hit ratings, S&P says by I-Nuclear A UK government sale of its one-third share of the uranium enrichment company Urenco could lower the credit rating of the company, Standard and Poor’s said. Standard and Poor’s said October 24 it has lowered its long-term corporate credit rating on Urenco Ltd. to 'BBB+' from 'A-'. The ratings agency confirmed the short-term corporate credit rating at 'A-2'. Standard and Poor’s said the credit rating was lowered “amid projections of reduced demand and an uncertain industry outlook.” S&P said it retained its “stable” outlook for Urenco, but said any change in the shareholder structure would be reviewed for potential impact on the group and could lead to increased downside pressure on the ratings. Urenco is owned one-third each by the UK and Dutch governments and by German utilities RWE and E.On. The UK has openly talked about selling its one-third share for years and recently appointed Morgan Stanley as financial advisors for such a sale, according to a September 29 statement from the UK Department of Energy and Climate Change. According to the Financial Times, E.On and RWE are also keen to sell and have appointed Bank of America Merrill Lynch to advise them on a sale. The Dutch government is considered least likely to want to sell, according to FT, but have appointed Credit Suisse as advisors. I-Nuclear | October 24, 2012 at 4:01 pm | Categories: Company News, DECC, Financial, UK | URL: http://wp.me/p22dAl-oJ