The ratings on France-based environmental services group Veolia Environnement S.A. (VE) are underpinned by its leading positions worldwide in water utility and waste management activities, and its strong European presence in energy services. VE benefits from diversified and recurring revenues under long-term municipal concessions, and shorter term industrial outsourcing contracts. These strengths are tempered by a focus on shareholder value and the group's moderate financial policy, given its focus on growth and the entailed large investment program of €15 billion-€20 billion between 2007 and 2009, including midsize acquisitions. The €2.6 billion capital increase completed in July 2007 has, however, restored the group's financial flexibility following a string of acquisitions. In addition, as a result of its focus on operating service
