Fitch affirms Iberdrola

Fitch Ratings said it affirmed Iberdrola SA's long-term issuer default rating at A- with a stable outlook and short-term issuer default rating at F2. Fitch affirmed Scottish Power Ltd.'s issuer default rating and senior unsecured ratings at A-.

Fitch also affirmed Iberdrola and its three financial subsidiaries Iberdrola International BV, Iberdrola Finanzas, SAU and Iberdrola Finance Ireland Ltd.'s senior unsecured ratings at A and commercial paper rating at F2 as well as the AAA(mex) national long-term rating for its Mexican certificados bursatiles program.

Iberdrola's ratings reflect its solid business model with a strong degree of business diversification across the vertically integrated electricity chain as well as a solid degree of geographical diversification with less than half of earnings derived from Spain in 2010, the agency said.

Iberdrola has some exposure to increased costs of funding under a sovereign stress scenario and to weak domestic demand and pricing, the agency added.

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