The ratings reflect Vivendi Environnement S.A.'s (VE) top-tier global position, primarily in water and waste-management activities, and related recurrent cash flows under long-term contracts. The group's low-risk business profile is offset by a leveraged financial profile. With 2001 turnover of €29.1 billion and EBITDA of €3.5 billion (deducting renewal operating expenses), VE enjoys leading positions in its four core environmental-service activities. Vivendi Water is the world's largest water and wastewater management company (47% of 2001 group turnover), and VE's waste-management subsidiary Onyx (20%) ranks third globally. In energy and transport services, VE holds strong positions in Europe via subsidiaries Dalkia and Connex. Overall, the group's activities are still largely concentrated in Europe, which represented 74% of first-half 2002 turnover, while
