France’s state-owned energy company EDF Group has sharply revised down its forecast hit from lower nuclear power output and government measures. EDF said that it expects a €26.2bn ($28.8bn) impact on 2022 EBITDA. It expects a €16bn ($17.6bn) from production falls and a €10.2bn ($11.2bn) hit from regulatory measures to its EBITDA vs. prior estimates of €11bn ($12.1bn) and €8.4bn ($9.2bn) respectively. The French government capped energy bill increases at 4% and EDF has also had to sell more nuclear power to third-party distributors below wholesale rates. It was downgraded in February to Baa1 from A3 by Moody’s and to BBB from BBB+ by S&P. EDF further warned that it could struggle to reach its financial targets that include maintaining net debt at 3x EBITDA by end-2023.

EDF’s dollar bonds were lower with its 5.25% Perp down 0.4 points to 98.95, yielding 6.51%.

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