On Jan. 13, 2012, we lowered the long- and short-term sovereign ratings on the Republic of Portugal to 'BB/B', assigned a negative outlook, and removed them from CreditWatch negative. In our view, the increased sovereign and economic risks in Portugal make the creditworthiness of Portuguese utility REN-Redes Energeticas Nacionais SGPS S.A. (REN) less robust and predictable. Still, we consider that the regulatory framework in Portugal remains credit supportive and the strategic agreement with State Grid Corporation of China and Oman Oil Company, REN's new largest shareholders, will likely reduce refinancing risks. We are lowering our long- and short-term ratings on REN to 'BB+/B' from 'BBB-/A-3' and removing them from CreditWatch negative. We are also lowering our ratings on REN's senior
