On March 25, 2009, Standard&Poor's Ratings Services revised its outlook on French environmental services group Veolia Environnement S.A. (VE) to negative from stable. At the same time, we affirmed our 'BBB+/A-2' long- and short-term corporate credit and debt ratings on VE. We also revised the outlook on VE's U.K. water subsidiary Three Valleys Water PLC to negative from stable, reflecting that we are only prepared to allow for a one-notch rating differential between Three Valleys and its parent; if we downgrade VE, then we will downgrade Three Valleys. At the same time, we affirmed the 'A-' long-term corporate credit and debt ratings on Three Valleys. In addition, we revised the outlook on the senior secured notes issued by
