Dominant domestic position in gas procurement and supply. Substantial share of low-risk regulated gas and electricity distribution activities, mainly in Spain but also in Latin America. Improved geographic and business diversification resulting from the Union Fenosa S.A. acquisition in 2009. Pressure on profitability in its key gas supply and wholesale operations, mainly caused by weak demand and falling gas prices. Negative court ruling in a dispute with one of its principal gas suppliers, which could lead to retroactive compensation payments in coming years. Uncertain timing on the recovery of receivables accumulated under the Spanish electricity tariff deficit. The ratings on Spanish utility Gas Natural SDG, S.A. (Gas Natural) reflect Standard&Poor's Ratings Services' view of its position as Spain's
