Leading positions worldwide in water and waste management. Recurrent revenues from long-term contracts bearing little volume and low performance risk. Wide diversity in business, contracts, and geography. Decline in core domestic market's historically high profitability. Waste segment's exposure to recessionary economic conditions in Europe. Focus on deleveraging and cost cutting. High debt and stretched credit metrics. Sound liquidity position. Management's track record of financial discipline. Standard&Poor's Ratings Services' outlook on environmental services group Veolia Environnement S.A. is negative. Our assessment factors in our view that continued poor economic conditions and the execution risk inherent in Veolia's strategic plan could hinder a turnaround in the group's cash flow generation. If so, the group may not achieve credit metrics we
