Moody's ups Iberdrola, Scottish Power to stable

Moody's Investors Service said it changed the outlook for the senior unsecured A3 ratings of Iberdrola SA, its guaranteed subsidiaries and Scottish Power Ltd. and its subsidiaries to stable from negative.

The companies' short-term Prime-2 ratings were affirmed.

The negative outlook on the Iberdrola group that was put in place in July 2010 was prompted by concerns that the review of the Spanish system's electricity costs and the freezing of the increase in electricity tariffs by the government increased regulatory risk with possible negative consequences for Spain's electricity companies, the agency said.

The change in outlook reflects the recent improvement in the Spanish regulatory environment, Iberdrola's solid operating and financial performance in 2010 and Q1 2011 and its commitment to a sound financial profile, the agency said.

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