On March 2, 2006, Standard&Poor's Ratings Services placed its 'A-' corporate credit ratings on water utilities United Waterworks and United Water New Jersey on CreditWatch with positive implications. The ratings on both entities are tied to European parent, Suez S.A. The rating action reflects the improvement of Suez's business and financial risk that would result from its announced merger with stronger, lower-risk Gaz de France S.A. (GDF). From a business risk perspective, while Suez has substantial diversity and enjoys top-tier European market positions in energy as well as water and waste, Standard&Poor's views GDF's business risk as lower. This is due to the large share of earnings it derives from its core regulated businesses in France,
