Moody's lowers ratings on Tokyo Electric by 3 notches

TOKYO (Kyodo) - Moody's Japan K.K. said Thursday it has downgraded both its senior secured rating and long-term issuer rating on Tokyo Electric Power Co. by three notches, from A-1 to Baa-1, effective the same day.
The rating actions, which follow a downgrade by two notches on March 18, reflect huge financial burdens on the utility firm in the wake of the March 11 devastating earthquake and subsequent tsunami that have crippled its Fukushima Daiichi nuclear power plant.
In addition to costs related to the Fukushima plant and those for restoring other power generation facilities also damaged by the disaster, TEPCO is expected to be liable to pay a large amount of damages for residents, farmers and businesses exposed to radiation leaks from the nuclear plant, Moody's Japan said.
The Baa-1 is the 8th highest credit-worthiness on Moody's rating system of 21 grades, which defines the 10th and lower rating as non-investment grades.
Moody's Japan said TEPCO may fail to be classified as an investment-grade borrower without support from the government.
The Japan unit of the major U.S. credit rating agency said it will continue reviewing its ratings on the company for possible downgrades.