On Jan. 29, 2009, Standard&Poor's Ratings Services said that its 'A' long-term and 'A-1' short-term corporate credit ratings on Spanish utility Gas Natural SDG, S.A. remain on CreditWatch with negative implications, where they were placed on Aug. 1, 2008. The CreditWatch status reflects Gas Natural's proposed acquisition of Spanish utility Union Fenosa S.A., which would weaken Gas Natural's credit profile. Since the announcement of the transaction, Gas Natural has acquired an initial 9.9% stake in Union Fenosa for about €1.7 billion under an agreement to buy the 45.3% stake in Union Fenosa owned by Spain-based construction company Actividades de Construcción y Servicios, S.A. (ACS). Moreover, the group has entered into several equity swaps and financial instruments for an
