Moody’s cuts TEPCO’s rating

Moody’s Investors Service has announced that it has cut Tokyo Electric Power’s credit rating by 2 notches. It cited uncertainty over the burden of compensating the people affected by its stricken Fukushima Daiichi nuclear power plant.

The ratings agency says damage at the plant was worse than previously thought. It also says a government framework to help with the compensation does not clearly show support for the utility. The firm is expected to pay a huge amount for a long time.

Moody’s says Tokyo Electric’s long-term rating has been downgraded to “Baa3” from “Baa1”. It says it will be reviewed for further possible downgrades.

A reduction of one notch would downgrade TEPCO to junk status. More NHK

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Posted on May 17, 2011, in Latest News and tagged , . Bookmark the permalink. Comments Off on Moody’s cuts TEPCO’s rating.

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