GDF SUEZ S.A.

Comprehensive scale with outstanding business and geographic diversity. Sizable and growing share of regulated and contracted operations. Leading and integrated market positions. Young and clean power generation assets. Depressed market conditions in its core European operations. Increasing exposure to fast-growing, but historically volatile, overseas markets. Some political risks. Strong record of financial discipline. Significant financial flexibility. Strong liquidity. Significant use of nonrecourse debt in project finance operations. The stable outlook reflects Standard&Poor's Ratings Services' expectation that GDF SUEZ S.A.'s medium-term strategic plan should enhance the predictability and resilience of its cash flows while supporting the consolidation of its credit metrics. We view a ratio of Standard&Poor's-adjusted funds from operations (FFO) to debt that exceeds 20% as

...Outlook: Stable The stable outlook reflects Standard & Poor's Ratings Services' expectation that GDF SUEZ S.A.'s medium-term strategic plan should enhance the predictability and resilience of its cash flows while supporting the consolidation of its credit metrics. We view a ratio of Standard & Poor's-adjusted funds from operations (FFO) to debt that exceeds 20% as commensurate with GDF SUEZ's "significant" financial risk profile and current ratings. The stable outlook also reflects our expectation that management will maintain a high level of financial discipline and will make use of its financial flexibility if necessary. Our stable outlook factors in the high likelihood that the group will make midsize acquisitions that suit its growth strategy and our expectation that such acquisitions would not cause a significant or sustained change to the group's financial trajectory; we would not expect any change to last longer than 12-18 months....

Full Report