The ratings on United Waterworks and United Water New Jersey are on CreditWatch with developing implications. Standard&Poor's Ratings Services first 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 merger terms, 65% of the share capital of Suez Environment (20% of first-half 2007 Suez EBIT) will be spun off to Suez shareholders during the merger, with the enlarged group retaining
