We have revised our assessment of French environmental services group Veolia Environnement S.A.'s financial risk profile to "significant" from "aggressive" as we believe its core activities exhibit medial volatility. We are affirming our 'BBB/A-2' ratings on Veolia. The negative outlook continues to reflect the significant downside risks to our base-case scenario. On May 19, 2014, Standard&Poor's Ratings Services affirmed its 'BBB/A-2' corporate credit ratings on French environmental services group Veolia Environnement S.A. The outlook remains negative. The affirmation follows our reassessment of Veolia's financial risk profile to "significant" from "aggressive." We now assess Veolia's cash flow and leverage using our medial volatility benchmark table, according to our criteria, as we believe its core activities have medial volatility characteristics.
