Low-risk regulated gas distribution and transmission network operations in France; Strong competitive gas supply position and large share of residential clients; Robust free cash flow generation ability; and Strong financial profile, even after pension reform. Reinvestment risk and strategic challenges in relation to European expansion plans and diversification into electricity generation and gas upstream activities; Increasing competition as liberalization process progresses; and Some uncertainty related to upcoming pension reform. The ratings on state-owned Gaz de France (GDF) reflect the company's stand-alone credit profile, which is underpinned by low-risk regulated gas transmission and distribution activities in France, a benign regulatory environment, and a strong financial profile. GDF also enjoys a dominant domestic gas supply position, underpinned by a high share of
