On Oct 26, 2007, Standard&Poor's Ratings Services placed its ratings on United Waterworks and United Water New Jersey on CreditWatch with developing implications. We placed the ratings on CreditWatch with positive implications on March 2, 2006, reflecting the pending merger between parent Suez S.A. (A-/Watch Pos/A-2) and French gas utility Gaz de France S.A. (GDF; AA-/Watch Neg/A-1+). The sale of Suez Environment, the Suez water and wastewater subsidiary, suggests potentially less support by Suez-GDF than previously incorporated into the ratings on United Waterworks and United Water New Jersey. Under the revised terms of the merger, 65% of the share capital of Suez Environment (20% of first-half 2007 Suez EBIT) will be spun off to Suez shareholders during the
