On March 24, 2011, we lowered long-term rating on the Republic of Portugal to 'BBB' and kept the ratings on the sovereign on CreditWatch negative. We are therefore lowering our long-term rating on Portuguese electricity and gas transmission system operator REN-Redes Energeticas Nacionais (REN) to 'BBB' and keeping the ratings on CreditWatch negative. The negative CreditWatch implications reflect the possibility, in our opinion, of a further deterioration in REN's financial risk profile and of another downgrade if we lower our sovereign ratings again. On March 28, 2011, Standard&Poor's Ratings Services lowered to 'BBB' from 'A-' the long-term corporate credit rating on REN-Redes Energeticas Nacionais, SGPS, S.A. (REN), the monopoly owner and operator of Portugal's electricity and gas transmission
