S&P lowers Iberdrola

Standard & Poor's said it lowered to BBB+ from A- the long-term corporate credit rating and senior unsecured issue rating on Iberdrola SA and its subsidiaries Iberdrola USA, Iberdrola Renewables Holdings Inc., Scottish Power Finance U.S., Scottish Power Ltd. and related entities.

The agency also said it removed the ratings from CreditWatch, where they were placed with negative implications in April.

S&P also said it affirmed the A-2 short-term corporate credit ratings on Iberdrola, Iberdrola USA, Scottish Power Ltd. and related entities.

The downgrades reflect the downward revision of an assessment of Iberdrola's business risk profile to strong from excellent due to ongoing challenges in the industry environment and deteriorating economic conditions in Spain, the agency said.

The challenging business and industry environment in Iberdrola's key domestic market could impair the group's profitability because it derives about 47% of revenues from its Spanish operations, S&P said.

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