Leading positions worldwide in water distribution and waste water treatment. A significant share of stable and recurrent revenues under long-term municipal contracts. Wide diversity by business, contract, and geography. Continuation of a less capital-intensive and more credit-protective financial strategy. Pressure on profitability from challenging market conditions. Limited ability to generate free cash flow before disposals. A degree of exposure to competitive factors, notably in waste and energy services, and to contract renewal risk for its contracts and concessions in water and transport. The ratings on Veolia Environnement S.A. (Veolia) reflect Standard&Poor's Ratings Services' assessment of the group's strong business risk profile and significant financial profile. The ratings are supported by its leading positions worldwide in water distribution and
