08/17/2012 | Press release

The Japan Atomic Power Co. CP: R&I Affirms a-1

distributed by noodls on 08/17/2012 03:07

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NEWS RELEASE

Aug 17, 2012

R&I Affirms a-1: The Japan Atomic Power Co. CP

Rating and Investment Information, Inc. (R&I) has announced the following:

ISSUER: The Japan Atomic Power Co.

Commercial Paper (change to program): a-1, Affirmed

RATIONALE:

The Japan Atomic Power Co. (JAPC)'s increase of an issue limit for CP this time is aimed at diversifying means of fundraising. Considering its CP issuance plan and the status of an overdraft facility, R&I judges that ample liquidity would be secured even after the increase of the issue limit.
Ever since the nuclear accident at The Tokyo Electric Power Co., Inc.'s plant, public confidence in the safety of nuclear power generation has deteriorated substantially. The rating takes into consideration growing risks associated with nuclear power generation including the difficulty of stable operation compared to the past, as well as deterioration in financial standing of electric power companies with which JAPC has strong relationships. The results of geological surveys at the Tsuruga Power Station are expected to come out around November 2012, and R&I will incorporate the results and JAPC's action plans into the rating. When all the three nuclear reactors owned by JAPC will be restarted has yet to be determined, and the prospects for the government's nuclear power policy and institutional framework for electricity business are uncertain. Accordingly, the Rating Outlook is Negative. R&I will keep a close eye on those developments including financial conditions of each electric power company.
The primary rating methodologies applied to this rating are provided at "Basic Methodologies for R&I's Credit Rating", "Electricity" and "R&I's Analytical Approach to Short-Term Ratings". The methodologies are available at the web site listed below, together with other rating methodologies that are taken into consideration when assigning the rating.
http://www.r-i.co.jp/eng/cfp/about/methodology/index.html

R&I RATINGS:

ISSUER: The Japan Atomic Power Co.

Commercial Paper

RATING: a-1, Affirmed

ISSUE LIMIT (mn): JPY 25,000→30,000

ISSUER RATING: A

RATING OUTLOOK: Negative

■Contact : Investors Service Division TEL. +81-(0)3-3276-3511 E-mail. infodept@r-i.co.jp

■Media Contact : Corporate Planning Division (Public Relations) TEL. +81-(0)3-3276-3438

Rating and Investment Information, Inc. Nihonbashi 1-chome Bldg., 1-4-1, Nihonbashi, Chuo-ku, Tokyo 103-0027, Japan http://www.r-i.co.jp

Credit ratings are R&I's opinions on an issuer's general capacity to fulfill its financial obligations and the certainty of the fulfillment of its individual obligations as promised (creditworthiness) and are not

statements of fact. Further, R&I does not state its opinions about any risks other than credit risk, give advice regarding investment decisions or financial matters, or endorse the merits of any investment. R&I does not undertake any independent verification of the accuracy or other aspects of the related information when issuing a credit rating and makes no related representations or warranties. R&I is not liable in any way for any damage arising in relation to credit ratings (including amendment or withdrawal thereof). As a general rule, R&I issues a credit rating for a fee paid by the issuer. For details, please refer to http://www.r-i.co.jp/eng/policy/policy.html. ©Rating and Investment Information, Inc.

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