On June 23, 2005, Standard&Poor's Ratings Services affirmed its 'AA-' long-term and 'A-1+' short-term ratings on French gas utility Gaz de France (GDF) following the launch of the group's IPO, accompanied by a capital increase. The outlook is stable. GDF's ratings were already based on its robust stand-alone credit quality and the affirmation reflects that we had already factored in the group's partial IPO and capital increase. The proceeds from the capital increase are expected to be used gradually for external growth. The ratings on GDF continue to be underpinned by: the large share of earnings derived from its core French regulated businesses (65% of consolidated EBITDA excluding exceptionals in 2004); the benign French regulatory environment; and its
