MEXICO CITY (Standard&Poor's) July 25, 2008--Standard&Poor's Ratings Services said today that it assigned its 'A-' senior unsecured debt rating to the Mexican pesos (MXN) 1,500 million notes due 2018, and MXN3,500 million notes due 2013 issued by Iberdrola Finanzas S.A.U. and guaranteed by Iberdrola S.A. (A-/Stable/A-2). It also affirmed the 'mxAAA' long-term issue rating on the CaVal scale assigned to the notes. Iberdrola will use proceeds from the notes for corporate expenses and to pay revolving credit lines. The rating on the notes reflects the unconditional and irrevocable guaranteed of payment provided by Iberdrola. The ratings on Iberdrola reflect the group's strong position as one of Spain's dominant vertically integrated electricity utilities and the regulated and
