S&P lowers Veolia to negative

Standard & Poor's said it revised the outlook to negative from stable on Veolia Environnement SA.

S&P also affirmed its BBB+ and A-2 long- and short-term corporate credit ratings.

The outlook revision reflects poor economic conditions and the execution risk inherent in Veolia's major strategic plan, which could hinder a turnaround in the group's cash flow generation and prevent the strengthening of its credit metrics to levels commensurate with the ratings within the next 12 to 24 months, the agency said.

Veolia's business risk profile is considered strong, supported by its leading worldwide positions in water and waste, recurrent revenues from long-term municipal contracts that bear minimal volume and performance risk and high diversification in terms of business, contracts and geography, S&P said.

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