The ratings on United Water New Jersey Inc. (UWNJ) and United Waterworks Inc. (UWW) reflect the consolidated credit profile of parent United Water Resources (UWR, not rated). UWNJ and UWW account for around 90% of UWR's consolidated revenues and 85% of consolidated funds from operations. Suez Environnement (not rated) indirectly owns UWR through United Water Inc. (not rated). UWNJ and UWW's stand-alone business risk profile is excellent, reflecting a favorable regulatory environment, no retail competition in their service territories, geographic diversity, largely residential markets, and low operating risk. Reliance on Suez Environnement for periodic capital infusions to fund capital spending requirements for infrastructure replacement, increasing compliance costs with water quality standards, and the higher risk of unregulated businesses at United
