Spain-based vertically integrated gas and electricity utility Gas Natural SDG S.A. has demonstrated a strong financial performance in 2015 despite challenging market conditions, maintaining both stable EBITDA and funds from operations (FFO). We are affirming our 'BBB/A-2' long- and short-term corporate credit ratings on Gas Natural. At the same time, we are modifying the factors that could result in us revising the rating to reflect the group's proven visibility on cash flow and its prudent operating strategy. The stable outlook reflects our view that Gas Natural will operate with some headroom at the current rating level, but that market conditions currently constrain the likelihood of a positive rating action in the short term. On March 29, 2016, Standard&Poor's
