On March 25, 2005, Standard&Poor's Ratings Services lowered its long-term corporate credit rating on state-owned French gas utility Gaz de France to 'AA-' from 'AA', given the medium- to long-term challenges linked to the group's expansion strategy. At the same time, Standard&Poor's affirmed its 'A-1+' short-term corporate credit and commercial paper ratings on Gaz de France. The outlook is stable. The rating action reflects the longer term challenges entailed by Gaz de France's plans to expand further in sectors such as gas networks and supply outside France; electricity generation and supply; and gas upstream activities; which are inevitably more competitive than Gaz de France's core French regulated businesses. The ratings factor in the expected partial privatization
