We forecast that Veolia Environnement's earnings will continue to strengthen, supported by cost-cutting and organic growth. In our view, the turnaround in profitability and credit metrics is sustainable, and risks to our base case have subsided. We are therefore revising our outlook on Veolia to stable from negative and affirming our 'BBB/A-2' ratings. The stable outlook reflects our anticipation that the group will consolidate its profitability and credit metrics in the coming years while self-financing its capital expenditures and dividends. On May 6, 2015, Standard&Poor's Ratings Services revised its outlook to stable from negative on French environmental services group Veolia Environnement S.A. At the same time, we affirmed the 'BBB' long-term and 'A-2' short-term corporate credit ratings. The
