Bulletin: French Utility Veolia To Offset €3.4 Billion Stake Purchase In Suez With Remedy Measures - S&P Global Ratings’ Credit Research

Bulletin: French Utility Veolia To Offset €3.4 Billion Stake Purchase In Suez With Remedy Measures

Bulletin: French Utility Veolia To Offset €3.4 Billion Stake Purchase In Suez With Remedy Measures - S&P Global Ratings’ Credit Research
Bulletin: French Utility Veolia To Offset €3.4 Billion Stake Purchase In Suez With Remedy Measures
Published Oct 06, 2020
3 pages (1928 words) — Published Oct 06, 2020
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Abstract:

PARIS (S&P Global Ratings) Oct. 6, 2020--S&P Global Ratings today said that it expects French utility Veolia Environnement S.A. (BBB/Stable/A-2) will be able to restore its balance sheet after purchasing a 29.9% stake in Suez Environnement S.A. for €3.4 billion from Engie S.A. In light of Veolia's prudent financial policy, we believe it will implement remedy measures that offset the financial impact of this fully debt-financed acquisition, resulting in S&P Global Ratings-adjusted funds from operations (FFO) to debt returning to at least 20% in 2021, after dipping well below the 20% rating target level in 2020 due to the acquisition and challenging operating conditions amid the COIVD-19 pandemic. Should mitigation measure not materialize in the coming quarters, we will reconsider

  
Brief Excerpt:

...PARIS (S&P Global Ratings) Oct. 6, 2020--S&P Global Ratings today said that it expects French utility Veolia Environnement S.A. (###/Stable/A-2) will be able to restore its balance sheet after purchasing a 29.9% stake in Suez Environnement S.A. for 3.4 billion from Engie S.A. In light of Veolia's prudent financial policy, we believe it will implement remedy measures that offset the financial impact of this fully debt-financed acquisition, resulting in S&P Global Ratings-adjusted funds from operations (FFO) to debt returning to at least 20% in 2021, after dipping well below the 20% rating target level in 2020 due to the acquisition and challenging operating conditions amid the COIVD-19 pandemic. Should mitigation measure not materialize in the coming quarters, we will reconsider our assessment. On Oct. 5, 2020, Veolia announced that Engie accepted its 3.4 billion offer to purchase a 29.9% stake in Suez. The price was higher than we initially anticipated, since Veolia increased its offer...

  
Report Type:

Bulletin

Ticker
VIE@FP
Issuer
Veolia Environnement S.A.
GICS
Multi-Utilities (55103010)
Sector
Global Issuers
Country
France
Region
United States
Format:
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MLA:
S&P Global Ratings’ Credit Research. "Bulletin: French Utility Veolia To Offset €3.4 Billion Stake Purchase In Suez With Remedy Measures" Oct 06, 2020. Alacra Store. May 05, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-French-Utility-Veolia-To-Offset-3-4-Billion-Stake-Purchase-In-Suez-With-Remedy-Measures-2532968>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: French Utility Veolia To Offset €3.4 Billion Stake Purchase In Suez With Remedy Measures Oct 06, 2020. New York, NY: Alacra Store. Retrieved May 05, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-French-Utility-Veolia-To-Offset-3-4-Billion-Stake-Purchase-In-Suez-With-Remedy-Measures-2532968>
  
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