Summary: SUEZ Water Resources Inc.

SUEZ Water Resources Inc. (SWR) is a lower-risk and mostly regulated water utility. We view the company's management of regulatory risk as effective. SWR has sufficient geographic and regulatory diversity with operations spread across five states. SWR has a large customer base. Overall, we view the company as being in the higher half of our business risk assessment category. We assess SWR's financial measures using our low-volatility financial benchmark tables, reflecting SWR's lower-risk and mostly regulated water utility operations, and effective management of regulatory risk. We expect SWR's financial measures to remain consistent with our financial risk profile assessment despite a modest weakening due to higher capital spending and the negative cash flow effects of U.S. tax reform. Specifically, we

...Business Risk: Excellent Financial Risk: Intermediate + SUEZ Water Resources Inc. (SWR) is a lower-risk and mostly regulated water utility. + We view the company's management of regulatory risk as effective. + SWR has sufficient geographic and regulatory diversity with operations spread across five states. + SWR has a large customer base. + Overall, we view the company as being in the higher half of our business risk assessment category. + We assess SWR's financial measures using our low-volatility financial benchmark tables, reflecting SWR's lower-risk and mostly regulated water utility operations, and effective management of regulatory risk. + We expect SWR's financial measures to remain consistent with our financial risk profile assessment despite a modest weakening due to higher capital spending and the negative cash flow effects of U.S. tax reform. + Specifically, we expect funds from operations (FFO) to debt to average about 15% through 2020, down from about 17% in 2017. + We expect...

Summary