Fitch rates Veolia notes BBB-

Fitch Ratings said it assigned a BBB- rating to Veolia Environnement's €1 billion and £400 million undated deeply subordinated reset rate notes.

The ratings reflect the highly subordinated nature of the notes, considered to have lower recovery prospects in a liquidation or bankruptcy scenario, Fitch said.

The notes have been notched down by two notches from Veolia's issuer default rating given their deep subordination and consequently, the lower recovery prospects in a liquidation or bankruptcy scenario relative to the senior obligations, the agency said.

The notes only rank senior to the claims of equity shareholders, Fitch said.

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