The ratings on United Waterworks reflect its relationship with ultimate parent Suez S.A. of France. The ratings on Suez reflect its diverse and recurring utility cash flows, as well as the top-tier market positions of its European energy, water, and waste activities. Suez's financial profile is not expected to be overly affected by the company's proposed acquisition of the remaining 49.9% interest in Belgian electric utility Electrabel for €11.2 billion in cash and shares. The outlook is stable. Suez's business risk profile strengths include its focus on lower-risk environmental waste and water activities, as well as its European energy operations. Somewhat moderating these strengths are the company's lower-margin and cyclical energy services operations. Suez also has significant exposure to volatile
