On May 6, 2003, Standard&Poor's Ratings Services affirmed its 'A+' long-term and 'A-1' short-term corporate credit ratings on Gas Natural SDG, S.A., Spain's principal gas utility, and removed the long-term rating from CreditWatch, where it had been placed on March 10, 2003. The affirmation followed the withdrawal of Gas Natural's takeover bid for Iberdrola S.A. The outlook is stable. The ratings on Gas Natural are based on its low-risk, regulated gas distribution activities in Spain, complemented by a strong competitive position in gas supply in Spain, and a strong financial profile. These strengths are offset by the group's increasing share of nonregulated revenues (including rapid diversification in higher-risk generation projects in Spain), a degree of exposure to Latin
