The ratings on Gas Natural SDG, S.A., Spain's principal gas utility, are based on its low-risk regulated domestic gas distribution activities, complemented by a strong competitive position in gas supply and a strong financial profile. A large client base, together with ownership of the Europe-Maghreb pipeline and access to liquefied natural gas (LNG) vessels mitigate large long-term contractual take-or-pay obligations. These strengths are offset by the group's growth-oriented strategy, including an increasing share of non-regulated activities, such as electricity generation in Spain (and--in the longer term-- upstream gas investments), and a material--albeit diversified--presence in Latin America, a higher risk market. Gas Natural's target for 2008 is to have more than doubled the EBITDA of €1.2 billion it achieved in 2003,
