Fitch Ratings has revised Teollisuuden Voima Oyj’s (TVO) Outlook to Negative from Stable and affirmed the Long-Term Issuer Default Rating (IDR) at ‘BBB-‘. The Negative Outlook reflects the latest announced delay of fuel loading, a critical milestone, at the third 1,600 MW nuclear plant Olkiluoto 3 (OL3) project caused by overall slow progress of works as well as disruption due to the coronavirus outbreak. There is a risk that the settlement agreement signed with the supplier consortium (Areva NP, Areva GmbH, Siemens AG (A/Stable) and Areva Group’s parent Areva SA) in March 2018 would not protect TVO from financial impacts should the start of power production be delayed beyond June 2021, because the consortium has not yet assigned a new date for the fuel loading. After this date, TVO would not be entitled to penalty payments from the supplier consortium under the settlement agreement anymore.
Fitch 20th April 2020 read more »