Moody's cuts Tepco to one notch above junk on compensation plan
TOKYO | Mon May 16, 2011 7:14am EDT
TOKYO May 16 (Reuters) - Moody's Investors Service cut its credit rating on Tokyo Electric Power to one notch above junk status, saying damage at its crippled nuclear plant was worse than previously thought and citing uncertainty over its burden to compensate victims.
Moody's said the ratings were kept on review for further possible downgrades.
The downgrade of Tokyo Electric's (Tepco) long-term issuer rating to "Baa3" from "Baa1" followed the government's announcement on Friday of a plan to help the utility handle compensation while remaining in operation and listed on the stock exchange.
The scheme will be funded with taxpayer money as well as contributions from other nuclear plant operators, but it places no limit on Tepco's liabilities for compensation, a factor likely to weigh on its finances for many years.
Article continues: http://www.reuters.com/article/2011/05/16/tepco-credit-idUSL4E7GG1UE20110516
Gold is $1,581/oz today. When it hits $2,000, it will be up 26.5%. Let's see how long that takes. - De 3/11/2013 - ANSWER: 7 Years, 5 Months
| 