EDF Transfers Half of RTE Grid Into Fund, Lowering Debt Ratio
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Electricite de France SA said it will improve its debt ratio with the transfer of half the French power grid Reseau de Transport d’Electricite into a fund that will cover costs for dismantling nuclear reactors.
The move, approved by EDF’s board Dec. 14, will lead to the deconsolidation of RTE’s net financial debt, “improving” EDF’s ratio of net debt to earnings before interest, tax, depreciation and amortization, Europe’s biggest power producer said today in a statement. This will have “no impact” on RTE’s contribution to EDF’s net income, the company said.