The ratings on Spanish utility Gas Natural SDG, S.A. (Gas Natural) reflect Standard&Poor's Ratings Services' view of its position as Spain's incumbent gas utility, with a significant share of low-risk regulated gas and electricity activities in Spain and Latin America. They also reflect the fact that the acquisition of Spanish utility Union Fenosa S.A., finalized in 2009, has extended the group's reach in electricity and increased customer numbers in Spain and internationally. These strengths are partially offset by ongoing pressure on profitability in the group's gas supply and wholesale operations; uncertainties relating to the final ruling on a dispute with one of Gas Natural's key gas suppliers; and likely delays to the receipt of substantial proceeds from the
