The ratings on United Waterworks Inc. (UWW) and United Water New Jersey Inc. (UWNJ) 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's and UWW's stand-alone business risk profiles are 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 Water Inc.
