On July 4, 2005, Standard & Poor's Ratings Services revised its outlook on France-based toll-road operator Sanef to negative from stable in light of the French state's accelerated divestment of its shareholding. At the same time, Standard & Poor's affirmed its 'A+' long-term and 'A-1' short-term credit ratings on Sanef. The ratings on Sanef reflect its low traffic risk and well-diversified toll-road network operations in France, with above-average traffic growth rates, a supportive regulatory regime with favorable toll-escalation indices, and robust recurring cash flows. These strengths are offset by Sanef's stated high dividend policy, and credit protection ratios that are still modest following the March 2005 Ç0.8 billion ($1 billion) net capital increase. Sanef operates Europe's fourth-largest interconnected toll-highway network,
