Transparent and supportive regulatory regime managed by an independent regulator. Asset-based remuneration, relatively immune to economic and sovereign conditions. Robust operating performance. Likely liquidity support from new larger shareholder. High exposure to country risk in Portugal. High leverage and weak credit metrics. Aggressive dividend policy. Sizable, though declining, capital expenditures. The ratings on Portuguese gas and electricity grid operator-Redes Energeticas Nacionais SGPS S.A. (REN) reflect Standard&Poor's Ratings Services' opinion of the group's "strong" business risk profile and "aggressive" financial risk profile. The 'BB+' long-term rating on REN is one notch higher than the long-term sovereign credit rating on the Republic of Portugal (BB/Negative/B), which is the maximum possible differential between the ratings on a nonsovereign issuer and its
