Transparent and supportive regulatory regime managed by an independent regulator. Asset-based remuneration that is relatively immune to economic and sovereign risk. Robust operating performance. Exposure to tough economic and fiscal conditions in Portugal. Intention to expand internationally in potentially less supportive jurisdictions. High leverage and weak credit metrics. An aggressive dividend policy. Significant ongoing liquidity support from the largest shareholder, State Grid International Development. Declining infrastructure needs. The positive outlook on Portuguese energy grid operator REN-Redes Energeticas Nacionais SGPS S.A. (REN) reflects Standard&Poor's Ratings Services' expectation that the company's business risk has improved. This is due to the increased earnings visibility over 2015-2017, thanks to REN receiving tariff approval for its electricity transmission business for this time period.
