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EDF Hit With Rating Warnings as France Acts on Energy Crisis

  • State-controlled firm ordered to sell more power at a discount
  • Utility also grappling with outages at some nuclear plants
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Electricite de France SA had a credit rating cut and was warned over further downgrades after the state-controlled utility was ordered to sell more power at a steep discount under action to tackle Europe’s energy crisis. 

The move underscores how the indebted utility will struggle to carry the extra financial burden as the government shields its citizens from soaring power and gas prices. The move may provide a short-term boost to the French economy -- and the political fortunes of President Emmanuel Macron -- at the expense of a company that forms the backbone of the country’s long-term energy strategy.