The ratings on France-based toll-road operator Sanef reflect its low traffic risk and well-diversified toll-road network operations in France, with above-average traffic growth rates, a supportive regulatory regime with favorable toll-escalation indices, and robust recurring cash flows. The ratings also take into account a net cash injection of about Ç0.8 billion ($1.1 billion) that will follow the planned IPO of about 30% of the company by its 99.6% owner, the French state (Republic of France; AAA/Stable/A-1+), at the end of March 2005. These strengths are offset by Sanef's stated high dividend policy, and credit protection ratios that are expected to be still modest following the capital increase. Sanef operates Europe's fourth-largest interconnected toll-highway network, well located across key economic and
