Significant share of low-risk regulated gas distribution revenues, together with favorable domestic gas regulation; Strong competitive position in natural-gas supply as Spain's incumbent operator; Good growth prospects for Spanish gas demand over the coming years; and Financial flexibility following the sale of 59% of subsidiary Enagas. Growth-focused strategy and reinvestment risk associated with the Enagas sale proceeds; A degree of exposure to higher-risk Latin American gas distribution assets; and Exposure to political instability in Algeria, a principal source of gas imports for Gas Natural and Spain in general. The ratings on Gas Natural SDG, S.A., Spain's principal gas utility, are based on its regulated domestic gas distribution activities, complemented by a strong competitive position in gas supply in Spain and
