The ratings on United Waterworks are tied to the credit quality of its ultimate parent, Suez S.A. The CreditWatch listing reflects the improvement in Suez's business and financial risk profiles that would result from its merger with lower-risk Gaz de France S.A. To resolve the CreditWatch listing on Suez, Standard & Poor's Ratings Services will focus on the merged entity's strategy and financial policy, which have yet to be fully unveiled; whether the concessions offered by the two groups are accepted by the EU competition authorities; and whether the terms of the proposed merger, including an exceptional Ç1 billion special dividend paid to Suez's shareholders, are revised. Pending the merger, the ratings on United Waterworks reflect the parental support historically
