Substantial--but declining--share of low-risk regulated gas distribution activities in Spain; Established large diversified gas contract portfolio as Spain's incumbent gas utility; Operational flexibility, thanks to ownership of midstream assets and access to various end markets; Strong free cash flow generation capacity; and A degree of financial flexibility through the remaining equity stake in Enagas. Growth-focused strategy and expansion into higher risk upstream activities and gas-fired power generation projects in Spain; Material--albeit diversified--contribution of Latin-American gas distribution assets; Large long-term take-or-pay obligations under gas import contracts; and Country risk related to Algeria, which accounts for approximately 45% of the group's supply sources. The ratings on Gas Natural SDG, S.A., Spain's principal gas utility, are based on its low-risk regulated domestic gas
