Moody’s revises Iberdrola to stable

Moody's Investors Service said it changed the outlook on the Baa1 issuer rating of Iberdrola SA to stable from negative.

At the same time, the agency stabilized the outlook on the Baa1 senior unsecured ratings of guaranteed subsidiaries Iberdrola International BV, Iberdrola Finance Ireland Ltd. and Iberdrola Finanzas, SAU, and Iberdrola International’s backed Baa3 junior subordinated debt rating.

Moody's also stabilized the outlook on the Baa1 issuer rating of Iberdrola-owned Scottish Power Ltd. and the senior unsecured ratings of its subsidiaries; as well as the outlook on the Baa1 issuer ratings of Iberdrola USA Inc. and Iberdrola Renewables Holdings, Inc.

All of these ratings were affirmed.

"Our decision to stabilize the outlook on Iberdrola's ratings primarily reflects the group's progress in restoring financial flexibility against the background of some improvement in the macroeconomic and regulatory backdrop in its core Spanish market,” Niel Bisset, Moody's senior vice president and lead analyst for Iberdrola, said in a news release.

“It also takes account of Moody's expectation that the group will continue to focus on completing delivery of its 2014-16 business plan. Although certain risks to profitability remain, and the recent UIL deal will slightly increase leverage, Moody's estimates that Iberdrola should nevertheless be able to carry out its plan while maintaining a financial profile consistent with guidance for the Baa1 rating."

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