The ratings on REN-Redes Energéticas Nacionais, SGPS, S.A. (REN) reflect the group's strong and predictable cash flows generated by its regulated operations, which benefit from a transparent and supportive remuneration framework. They also take into account the group's strategic role in Portugal as the country's gas and electricity transmission infrastructure owner and system operator, and the natural monopoly features of its operations. These strengths are partially offset by a weak debt maturity profile and modest debt protection measures--although both should improve in the coming years. The Portuguese government owns 51% of the group, but the ratings do not factor in sovereign support. Following Standard&Poor's Ratings Services' downgrade of the Republic of Portugal (A+/Stable/A-1) on Jan. 21, 2008, REN
