The outlook on Gas Natural SDG, S.A. was revised to negative from stable on March 5, 2002. The outlook revision on the Spanish utility solely results from the downgrade of the company's parent Repsol-YPF S.A. with the maintenance of a negative outlook. It does not reflect a change in Gas Natural's own credit quality, with its 2001 results being largely in line with expectations. The weakening of the creditworthiness of Repsol-YPF--the company's largest shareholder (47%)--increases interference risk through asset transfers or upstreaming of cash. A large maximum four-notch differential is currently allowed between the company and its parent, based on the following mitigating factors: The balancing role of Gas Natural's other strategic, 26% shareholder, "la Caixa". With four board representatives
