The ratings on French-based Veolia Environnement S.A. (VE) reflect its top-tier global position in water-utility and waste-management activities, as well as a strong European presence in energy services. The company's above average business profile is underpinned by diversified and recurring revenues under long-term municipal concessions and medium-term industrial outsourcing contracts. These strengths are offset primarily by a modest, albeit improved financial profile, and a perceived increased focus on shareholders. VE ranks among Europe's 10 largest utilities, with reported core EBITDA of €3.5 billion in 2003 (i.e. excluding contributions from U.S. water activities earmarked for disposal). The group's environmental service activities comprise the following four divisions: Veolia Water with Compagnie Générale des Eaux in France (water), CGEA-Onyx (waste), Dalkia (energy services),
