Transparent and supportive regulatory regime managed by an independent regulator. Asset-based remuneration that is relatively immune to economic and sovereign risk. Robust operating performance. Intention to expand internationally in potentially less supportive jurisdictions. High leverage and weak credit metrics. An aggressive dividend policy. Significant ongoing liquidity support from the largest shareholder, State Grid International Development. Declining infrastructure needs. The stable outlook on REN-Redes Energéticas Nacionais SGPS S.A. (REN) mirrors that on Portugal and reflects Standard&Poor's Ratings Services' expectation that REN will likely sustain its strong business risk profile and aggressive financial risk profile. Under our criteria, the long-term rating on Portugal constrains the ratings on REN, based on our view that REN has "high" exposure to country risk.
