The ratings on Portuguese gas and electricity grid operator-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. The 'BB+' long-term rating on REN is one notch higher than the long-term sovereign credit rating on the Republic of Portugal (BB/Negative/B), which is the maximum possible differential between the ratings on a nonsovereign issuer and its related sovereign in the European Monetary and Economic Union (EMU, or the eurozone) under our criteria. This is because we assess REN as having "high" exposure to domestic country risk, based on the utility sector's "high" sensitivity to country risk and REN's concentration of virtually 100% of its revenues in
