Stable and recurrent revenues under long-term municipal contracts About one-half of earnings derived from stable and resilient water business High business and geographic diversification Top-tier market positions Exposure to price competition at contract renewal time and renewal risk at maturity given limited infrastructure ownership Exposure to more volatile industrial clients Moderate financial profile Greater appetite for external growth The ratings on France-based environmental services group Veolia Environnement S.A. (VE) are underpinned by its leading positions worldwide in water utility and waste management activities, and its strong European presence in energy services. VE benefits from diversified and recurring revenues under long-term municipal concessions, and shorter term industrial outsourcing contracts. These strengths are tempered by a focus on shareholder value and the
