Research Update: Spanish Power Grid Operator Red Electrica Ratings Lowered To 'A+/A-1' After Sovereign Rating Action; Outlook Negative Feb 12
- Language: English
- Published: February 2012
- Region: Spain
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This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.
The ratings on Red El-ctrica Corporaci-n S.A. and its subsidiary Red El-ctrica de Espa-a S.A.U. (together, REE)--Spain's electricity system operator and owner of the bulk of the country's electricity transmission grid assets--reflect the group's stable regulated cash flows, supportive regulatory framework, and strategic importance for the Spanish government's energy and economic policy. Diversification activities are minimal, carried out through legally separated subsidiaries, and financed on a nonrecourse basis. The ratings are constrained by REE's moderately aggressive capital structure--with gearing (debt to debt plus equity) of 69%--which reflects the debt-financed acquisition of transmission assets. In addition, REE has a large -4 billion capital-investment program between 2009 and 2013 that it must finance. In July 2008, to comply with Spain's new electricity...
Companies mentioned in this report are: Red Electrica Corporacion S.A.,Red Electrica de Espana S.A.U.
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Red Electrica Corporacion S.A.,Red Electrica de Espana S.A.U.