We believe French environmental services group Veolia Environnement S.A.'s (Veolia) massive cost-cutting plans will be hampered by economic conditions that are weaker than we anticipated. We are revising our outlook on Veolia to negative from stable and affirming our 'BBB+/A-2' ratings. The negative outlook reflects our opinion that Veolia's credit metrics could fall short of our expectations if the group failed to implement its cost-cutting, growth, and disposal plans, or to adapt to the potentially more-adverse conditions. On Oct. 10, 2012, Standard&Poor's Ratings Services revised its outlook to negative from stable on French environmental services group Veolia Environnement S.A. (Veolia). At the same time we affirmed our 'BBB+/A-2' long- and short-term corporate credit ratings. The outlook revision reflects
