French environment services group Veolia Environnement (VE) reduced its debt significantly in 2009 and has confirmed its shift to a more conservative financial policy. VE has committed to maintaining stable debt over the next three years, entailing the self-financing of its capital spending and dividends. We are revising our outlook on VE to stable from negative and affirming the ratings at 'BBB+/A-2'. The stable outlook reflects our belief that VE will continue to improve its credit measures in 2010 and 2011 on the back of a gradual pick-up in its earnings and its more conservative financial policy. On April 21, 2010, Standard&Poor's Ratings Services revised its outlook to stable from negative on French environmental services group Veolia Environnement
