S&P upgrades Red Electrica to A-

Standard & Poor's said it raised its long-term corporate credit rating on Red Electrica Corporacion SA and its subsidiary Red Electrica de Espana SAU to A- from BBB+.

The outlook is stable.

The agency also affirmed its A-2 short-term corporate credit ratings on both entities.

S&P said the upgrade reflects its recent upgrade of Spain. The agency factors in its assessments of Red Electrica’s "excellent" business risk profile and "significant" financial risk profile, which together result in a stand-alone credit profile of a-.

Under the criteria for rating above the sovereign, Red Electrica can be rated up to one notch above Spain.

S&P considers that Spain's improving economic prospects support Red Electrica’s credit fundamentals.

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