Strategic importance as the monopoly operator of the electricity and gas transmission networks in Portugal. Transparent and supportive regulatory regime managed by an independent regulator. Asset-based remuneration, relatively immune to economic and sovereign conditions. Robust operating performance. High leverage and weak credit metrics. Deteriorating sovereign credit standing. A substantial capital expenditure plan and an aggressive dividend policy. A risk of regulatory reset and of a tariff deficit. The rating on Portuguese utility REN-Redes Energeticas Nacionais, SGPS, S.A. (REN) reflects Standard&Poor's Ratings Services' assessment of the group's strong business risk profile and significant financial risk profile. Supporting our assessment is the group's national strategic importance to Portugal's energy system, its monopolistic market position, and its supportive regulatory regime with
