Charlotte Business Journal: Rating agencies raise nuclear issues - The Diigo Meta page

• 29 Jun 09
  

  Energy Net

  Building new nuclear plants could prove hazardous the credit ratings of power companies.
  
  Moody’s Investors Services warns in its new report —“New Nuclear Generation: Ratings Pressure Increasing” — that it may view nuclear construction plans as a negative.
  
  Moody’s worries that investment in new nuclear is so costly that it amounts to a “bet the farm” strategy. It increases business risk and operating risk. And the possibility that utilities might be forced to abandon some projects after construction starts, while less likely now than 20 years ago, cannot be dismissed.
  Downgrades possible
  
  The report notes that in the last round of construction — most of which occurred in the 1970s and 80s — proved troublesome for credit ratings.

  nuclear energy reactors economics nuke.news 2009-s5

  • Of the 48 companies Moody’s rated then, 40 saw their credit ratings slip. That includes Duke Energy, which abandoned a proposed plant and saw its rating drop three places to A2 from Aa2 FMB. Progress Energy, which ran into major financial difficulties with the Shearon Harris plant, saw its rating drop six places to Baa2.

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