BlackRock Says Bailout May Keep Tepco Rating Being Cut to BBB+
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Tokyo Electric Power Co., the company at the center of the worst nuclear crisis since Chernobyl, isn’t likely to be downgraded to BBB+ by Japan Credit Rating Agency Ltd., as the government bailout bolsters its business, according to BlackRock Inc.
Tokyo Electric, known as Tepco, plans to deliver a business restructuring plan this month as the company may face 4.5 trillion yen ($56 billion) in compensation payments by March. Companies need at least one risk assessor to give them a grade above BBB+ to stay in the Nomura Bond Performance Index, which is used by most major Japanese pension funds. Tepco’s sole foothold is JCR, which rates it A.