Business profile of the company evaluated as excellent
Standard & Poor's maintain the credit rating of Red Eléctrica at AA- and improves its outlook

The credit rating agency Standard & Poor's has affirmed the credit rating of Red Eléctrica Corporación, S.A. and that of its subsidiary Red Eléctrica España, S.A.U. at AA- long-term and A-1+ short-term, according to a report published today.

Additionally, it has improved the outlook on the said companies raising it to stable, after having been revised to negative as a result of the purchase of the transmission assets carried out last year.

According to the agency, the improvement in the outlook follows the strengthening of the financial profile and the regulatory advances made, that culminated in February this year with the approval of the investment standards. Also it reflects the possibility that the company would maintain its present rating level although Spain, as a country, underwent a downgrade of its rating.

Standard & Poor's think that the business profile of the company is excellent, due to its key role in the Spanish electricity system and due to its income based on the remuneration of its assets and, therefore, not being bound to changes in the demand or prices in the electricity market.

Finally, it highlights that the position of liquidity of the company is strong according to the criteria of the agency and, additionally, shows that the cash flows generated by Red Eléctrica over the next few years will allow the financial debt to either be maintained or reduced over forthcoming years.