The ratings on Gaz de France (GDF) continue to be underpinned by the large share of earnings derived from its core French regulated businesses; the benign French regulatory environment; and its very strong financial profile. These positive factors are offset to a degree by the longer-term challenges entailed by the group's plans to expand further in sectors such as gas networks and supply outside France; electricity generation and supply; and upstream gas activities, which are inherently more competitive than GDF's core regulated French businesses. Some 61% of GDF's 2005 first half EBITDA was derived from low-risk regulated gas transmission and distribution activities in France. European regulated gas infrastructure assets accounted for a further 6.5% of group EBITDA. Competitive activities, on
