The ratings on United Waterworks reflect the company's above average business position. The ratings also reflect the consolidated credit strength of United Waterworks' ultimate parent, Suez Lyonnaise des Eaux S.A. United Waterworks is a water utility holding company with operations in nine states, serving more than 330,000 customers. The company's strong business position benefits from regulatory and geographic diversification. The geographic diversity tempers the effect of adverse weather patterns on the company's cash flow and cushions the effect of unfavorable rate decisions in any particular jurisdiction. The regulatory environment is viewed as generally supportive of credit quality, providing the company with adequate and timely rate relief to maintain profitability. The customer base is primarily residential, affording a measure of revenue
