Standard&Poor's today left unchanged its outlook on Gas Natural (A+/Stable/A-1), despite the outlook revision to negative from stable of its 47%-owner Repsol-YPF S.A. (BBB+/Negative/A-2) following the continued deterioration in the Argentinian operating environment. While the weakening of its largest shareholder's creditworthiness can increase interference risk through asset transfers or upstreaming of cash, Standard&Poor's currently views such risks as slight, given: -- The balancing role of Gas Natural's other strategic, 26% shareholder, La Caixa; -- The absence of overlap between Gas Natural's gas transport and supply businesses and Repsol-YPF's activities; -- The disincentive for Repsol-YPF to leverage Gas Natural, since the latter is fully consolidated in its accounts; and -- The substantial financial flexibility embedded in Gas
