Fitch puts Scottish Power on positive watch

Fitch Ratings said it placed Scottish Power plc's BBB+ issuer default rating, A- senior unsecured rating and F2 short-term rating on Rating Watch positive, along with Scottish Power UK plc's A- issuer default rating, A senior unsecured rating and F2 short-term rating.

The placement follows Iberdrola SA' €17.1 billion offer for 100% of the share capital of Scottish Power and reflects the possibility of a rating uplift as a result of the integration into the enlarged Iberdrola group.

Fitch said that in its analysis, it will also focus on the control that these entities will maintain over future cash flows and on the extent to which Iberdrola manages to apply its stated central funding strategy for wholly owned businesses. In this context, Fitch will closely monitor issues related to potential structural subordination.

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