The ratings on Veolia Environnement S.A. (Veolia) reflect Standard&Poor's Ratings Services' assessment of the group's business risk profile as "strong" and its financial risk profile as "significant." They are supported by Veolia's leading worldwide positions in water and waste, which represented 46% and 33% of EBITDA in 2011, and by its stable and recurrent revenues from long-term municipal contracts that bear minimal volume and performance risk. Veolia is also very diverse in terms of business, contract, and geography. The ratings are also underpinned by the new management's financial discipline, the group's "strong" liquidity position, as our criteria define the term, and our anticipation of free operating cash flow (FOCF) turning positive. These strengths are offset by lower growth
