The ratings reflect Veolia Environnement S.A.'s (VE, previously called Vivendi Environnement) top-tier global position in water and waste-management activities, as well as its strong European position in energy and transport services. The company's relatively low-risk business profile--which benefits from recurring income under long-term contracts--is offset by a modest, but improving, financial profile. With turnover and EBITDA of €28 billion and €3.7 billion, respectively, of its core activities in 2002, VE enjoys leading positions in its four environmental-service activities: water and waste-water management (44% of 2002 core turnover, of which half in France), followed by waste management (20%), energy services (15%), and passenger rail and road transport (11%). In contrast to traditional utility companies, VE's strategy is to focus on operating
