Fitch affirms Scottish Power

Fitch Ratings said it affirmed Scottish Power UK plc's long-term foreign-currency issuer default rating at A-, along with its senior unsecured debt rating and short-term issuer default rating at A and F2, respectively.

Scottish Power is an indirect subsidiary of Iberdrola SA.

The outlook is stable.

The ratings reflect the stability of cash flow from the regulated electricity distribution and transmission businesses, Fitch said, and the supportive and transparent regulatory environment in the United Kingdom.

The combined business risk profile of the company is adversely affected by its ownership of the wholesale energy business, which tends to have a more volatile earnings profile, with cash flow generation that is more aligned with macroeconomic factors, the agency said.

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