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. Exposure to liberalized wholesale gas and electricity markets. Exposure to regulatory risk in Spain and to the imbalance between tariffs and costs in the electricity sector. The ratings on Spanish utility Gas Natural SDG S.A. (Gas Natural) reflect Standard&Poor's Ratings Services' view of its "significant" financial risk profile and "strong" business risk profile. Gas Natural's strong business risk profile is supported by its position as Spain's incumbent gas utility, with competitive positions in the electricity sector following the
