Moody's confirms Gas Natural

Moody's Investors Service said it confirmed the A2 long-term and prime-1 short-term ratings of Gas Natural Finance BV, fully guaranteed by Gas Natural SDG SA, after the company decided to withdraw its bid for the Spanish utility, Endesa SA. Moody's said it put the company's ratings on downgrade review in September after it made a €22.5 billion cash and stock bid for Spain's largest electric utility.

The outlook is stable.

The ratings reflect Gas Natural's leading position in its core Spanish market and Moody's assessment of its business risk profile, which is characterized by both low-risk, regulated domestic gas distribution activities and higher-risk, competitive gas supply and electricity activities.

The ratings also reflect Gas Natural's moderate financial profile. Moody's said it said Gas Natural has relatively limited financial flexibility within the rating category, particularly when taking into account the company's substantial ongoing capital expenditure program.

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