The ratings on Spain's principal gas utility, Gas Natural SDG, S.A. were placed on CreditWatch with negative implications on Sept. 6, 2005, following the company's €22.55 billion ($28.27 billion) bid for a 100% stake in the Spanish utility, Endesa S.A. The placement reflects the risk of a weakening financial profile resulting from the proposed €7.8 billion cash-based portion of the bid and the consolidation of Endesa's approximate €20 billion of net debt, partially mitigated by the planned asset disposal to Iberdrola S.A. Any downgrade of the long-term rating on Gas Natural would most likely be by one notch, although a two-notch downgrade cannot be excluded at this stage. Based on current information and assuming the asset sale goes through, Standard
