S&P Rates EDF Captive ‘AA-‘

January 8, 2007

Standard & Poor’s Ratings Services has assigned its “AA-” long-term counterparty credit and insurer financial strength ratings to Ireland-based Wagram Insurance Co. Ltd., the wholly owned captive insurer of French state owned utility Electricité de France S.A. (rated “AA-“/Negative – “A-1+”) with a negative outlook.

“Wagram qualifies as a captive insurer under our rating criteria and, as such, is rated at the same level as its parent,” explained S&P credit analyst Eoin Naughton.

“Stand-alone characteristics include Wagram’s effective management and regulatory environment, and good capitalization with very strong risk-adjusted capital adequacy,” said S&P. “These positive factors are offset by the company’s reliance on reinsurance in the event of a severe loss.”

S&P said the “negative outlook on Wagram reflects the negative outlook on its parent, EDF. The ratings on the parent will determine the ratings on Wagram for as long as Wagram continues to qualify as a captive insurer under Standard & Poor’s rating criteria. Wagram’s captive status is dependent on the company not writing a material amount of third-party business; this is not anticipated in the medium term. On a stand-alone basis, risk-adjusted capital adequacy is expected to remain very strong for the foreseeable future.”

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