A favorable regulatory environment; The absence of retail competition; Stable, geographically diverse markets; Relatively low operating risk; and Support from indirect parent Suez Environnement S.A. as needed. Elevated capital spending requirements for infrastructure replacement; Increasing compliance costs with water quality standards; and Higher-risk unregulated operations of indirect parent United Water Inc. The ratings on United Water New Jersey Inc. (UWNJ) and United Waterworks Inc. (UWW) reflect the consolidated credit profile of parent, United Water Resources Inc. (UWR; not rated). UWNJ and UWW account for around 90% of UWR's consolidated revenues and 85% of consolidated funds from operations. Suez Environnement S.A. indirectly owns UWR through United Water Inc. (not rated). UWNJ and UWW's stand-alone business risk profile is excellent. The excellent
