S&P affirms United Waterworks

Standard & Poor's said it affirmed its A- corporate credit ratings on United Waterworks and United Water New Jersey and removed the ratings from CreditWatch with developing implications.

The outlook is stable.

The ratings were originally placed on CreditWatch on March 2, 2006, following the announcement of the merger between Suez SA, the ultimate parent of United Waterworks and United Water New Jersey, with Gaz de France SA.

The agency said the rating action largely reflects its assessment of United Waterworks' and United Water New Jersey's standalone credit quality and limited parental support. It also reflects S&P's assessment of the financial risk profile of United Waterworks and United Water New Jersey's parent, United Water Resources Inc.

"The financial profile has gradually improved over the past few years, mainly due to the implementation of rate increases and cost-recovery mechanisms, which have enhanced revenues and cash flow," S&P credit analyst Kenneth L. Farer said in an agency statement.

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