The ratings on Wilmington, Del.-based water supplier United Waterworks Inc. (UWW) and Harrington Park, N.J.-based water supplier United Water New Jersey Inc. (UWNJ) reflect the consolidated credit profile of Harrington Park, N.J.-based 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 (FFO). 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 and increasing compliance costs
