The new regulatory framework for gas transmission in Spain improves Enagas S.A.’s cash flow visibility, even beyond the current 2027-2032 period, as it introduces the remuneration for fully depreciated assets, reducing the risk of stranded assets. We revised the regulatory advantage to strong from strong/adequate. As a result, we revised Enagas’ business risk profile to excellent from strong and reduced our funds from operations (FFO) to debt threshold for the'BBB+'rating to 12% from the previous 15%. We do not expect any material investments in hydrogen infrastructure before 2029 at the earliest, which should support credit metrics over 2026-2028. We therefore placed all our ratings on Enagas S.A., including our'BBB+'long-term issuer credit rating, on CreditWatch with positive
