S&P lowers Endesa

Standard & Poor's said it lowered the long-term corporate credit and senior unsecured issue ratings on Endesa SA to BBB+ from A-.

The agency also said it lowered the rating on Endesa's preferred stock to BBB- from BBB.

S&P also said it removed the long-term corporate credit and issue ratings from CreditWatch, where they were placed with negative implications in December 2011.

Endesa's stand-alone credit profile also was revised downward to BBB+ from A- and its A-2 short-term corporate credit rating was affirmed.

The outlook is stable.

The downgrade mirrors that of its Italian parent, Enel SpA, S&P said.

Endesa is a core entity within the Enel group, as it contributes more than 40% of the group's consolidated EBITDA, the agency said, so the ratings are equalized.

The ratings also are underpinned by Endesa's solid position as one of Spain's largest vertically integrated electricity utilities, S&P said.

The effect of depressed economic conditions in Spain on demand and the risk related to regulatory uncertainty in the Spanish energy sector partially offset those strengths, the agency said.

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