Research Update: SUEZ Water Resources LLC Off CreditWatch, Outlook Is Negative, On Merger Agreement Of Parent With Veolia

On April 12, 2021, Veolia Environnement S.A. (Veolia) and Suez S.A. (unrated), the ultimate parent of SUEZ Water Resources LLC (SWR) reached an agreement allowing a merger. Veolia increased its offer to €20.5 per share, with the total price for the remaining 70.1% of Suez equity at about €9.4 billion, €1.5 billion higher than the previous offer. S&P Global Ratings is affirming the 'A' ratings on SWR and subsidiary SUEZ Water New Jersey Inc. At the same time, we are removing the ratings on these entities from CreditWatch, where we placed them with negative implications on Jan. 26. The negative outlook reflects our expectations for reduced financial cushion at SWR from its downgrade threshold and the uncertainties related to the

...- On April 12, 2021, Veolia Environnement S.A. (Veolia) and Suez S.A. (unrated), the ultimate parent of SUEZ Water Resources LLC (SWR) reached an agreement allowing a merger. Veolia increased its offer to 20.5 per share, with the total price for the remaining 70.1% of Suez equity at about 9.4 billion, 1.5 billion higher than the previous offer. - S&P Global Ratings is affirming the 'A' ratings on SWR and subsidiary SUEZ Water New Jersey Inc. At the same time, we are removing the ratings on these entities from CreditWatch, where we placed them with negative implications on Jan. 26. - The negative outlook reflects our expectations for reduced financial cushion at SWR from its downgrade threshold and the uncertainties related to the acquisition that potentially could further weaken financial measures or lead to a weakening of the insulating measures in place. Our base-case assumes SWR and its intermediary holding company, SUEZ Utility Holdings Inc., maintain stand-alone adjusted funds from...

Research Update