We were expecting the weak credit profile of Spain-based utility Gas Natural SDG, S.A. to be bolstered by a series of disposals and the securitization of a material portion of Spanish tariff deficit-related receivables. We now believe this recovery could be constrained by a compensation payment of up to €1.5 billion to a supplier, potential pressure on profits at Gas Natural's Spanish gas supply operations, and delays to the securitization of the Spanish tariff deficit. We are therefore lowering our long-term corporate credit rating on Gas Natural to 'BBB' from 'BBB+'. The stable outlook reflects our view that Gas Natural's strategic focus on debt reduction should allow it to maintain FFO to debt of 16%, which we consider to be
