On March 20, 2008, Standard&Poor's Ratings Services said that its 'AA-/A-1+' short- and long-term corporate credit ratings on French gas utility Gaz de France S.A. (GDF) remain on CreditWatch with negative implications pending completion of the merger with Franco-Belgian multi-utility Suez S.A. (A-/Watch Pos/A-2). The ratings were placed on CreditWatch on Feb. 27, 2006, following the initial merger announcement. The continued negative CreditWatch status reflects that the merger should have a dilutive impact on GDF from a credit standpoint--in terms of both business and financial risk--given Suez's weaker business mix and financial profile. This is despite the fact that the merger would address GDF's strategic issues, especially those related to its plans to expand further abroad and in
