Multi-utility GDF SUEZ has announced it is in preliminary talks to combine its Energy International business with the project assets of U.K.-based power developer International Power. We understand that GDF SUEZ would acquire a majority stake in IPR following completion of the possible merger. We are placing our 'A/A-1' corporate credit ratings on GDF SUEZ on CreditWatch with negative implications. The CreditWatch placement reflects our view that this transaction, if completed, could weaken GDF SUEZ's business risk profile to a level no longer commensurate with an 'A' long-term rating, particularly in the absence of support from a strengthening financial profile. On July 20, 2010, Standard&Poor's Ratings Services placed on CreditWatch with negative implications its: 'A/A-1' long- and short-term
