Standard&Poor's revised its outlook on Vivendi Environnement S.A. on March 8, 2002. The outlook change was triggered by the announcement of the France-based multi-utility's potential acquisition of U.K. water utility Southern Water PLC, as well as by higher-than-expected 2001 debt levels reported by Vivendi Environnement on March 5, 2002. These combined elements lead Standard&Poor's to believe that Vivendi Environnement may have difficulty implementing its growth strategy while further materially improving its credit measures in the short term. Southern Water is a U.K. regulated water utility with annual turnover of £421 million (€682 million) and EBIT of £225 million (€364 million). Its sale--initially to First Aqua for £2.05 billion and thereafter to Vivendi Environnement--is subject to a
