The ratings on Spanish power and gas company Gas Natural SDG S.A. (Gas Natural) reflect Standard&Poor's Ratings Services' view of the company's "strong" business risk profile and "significant" financial risk profile. Gas Natural's business risk profile is supported by the company's resilient performance despite the recession in Spain. We believe this is owing to its significant share of low-risk regulated domestic gas and electricity activities, meaningful international diversification with operations in Latin America, and its flexible and profitable international midstream gas operations, which increasingly lift group margins. We consider these strengths to be partly offset by Gas Natural's exposure to the weak electricity and gas markets in Spain. We continue to believe that electricity generation oversupply, coupled with
