The ratings on Portuguese gas and electricity grid operator REN-Redes Energeticas Nacionais SGPS S.A. (REN) reflect Standard&Poor's Ratings Services' opinion of the group's "strong" business risk profile and "aggressive" financial risk profile. REN's strong business risk profile incorporates the group's monopoly position in a well-established and supportive regulatory regime managed by an independent regulator. We also factor in the group's regulated-asset-based revenues that are immune to power volumes and price changes and partially hedged against inflation and rising sovereign risk. Constraints include high exposure to Portugal's deteriorating macroeconomic conditions and, to a lesser degree and in the longer term, regulatory reset risk. Our assessment of REN's financial risk profile as "aggressive" reflects our view of the group's high
