On Sept. 3, 2007, Standard&Poor's Ratings Services said that its 'AA-/A-1+' ratings on French gas utility Gaz de France S.A. (GDF) remain on CreditWatch with negative implications following the announcement of the revised terms for the merger between GDF and 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 reflects that, notwithstanding changes in the terms of the merger, it 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
