S&P: Veolia outlook negative

Standard & Poor's said it revised the outlook on Veolia Environnement SA to negative from stable and affirmed its BBB+/A-2 long- and short-term corporate credit and debt ratings.

"The outlook revision reflects that VE's credit measures at the end of 2008 were somewhat below our expectations for a BBB+ long-term rating," S&P analyst Hugues de la Presle said in a statement.

"In our view, they are unlikely to improve meaningfully in 2009, given ongoing pressures on earnings at the group's large waste business and VE's limited ability to generate discretionary cash flow despite its announced steep cut in capital expenditures," de la Presle said.

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