Gas Natural has entered into an agreement to sell a 20% stake in its Spanish gas distribution network for a total consideration of €1.5 billion. We understand the transaction will close in early 2018 and that the proceeds may be used to support ongoing projects, with any excess possibly going toward future investments, debt reduction, or shareholder remuneration. In our view, the proposed transaction has only a slight negative effect on the group's business risk profile and the group still has flexibility within the rating. As a consequence, we are affirming our 'BBB/A-2' ratings on Gas Natural. The stable outlook on Gas Natural stems from our expectation that the company will maintain a ratio of funds from operations to debt
