Fitch downgrades Red Electrica

Fitch Ratings said it downgraded Red Electrica Corporacion's (Red Electrica) long-term issuer default rating to A- from A.

The senior unsecured rating also was downgraded to A- from A.

The long-term ratings also were removed from Rating Watch negative.

The outlook is stable.

The downgrades follow Red Electrica's release of its updated strategic plan in February and updated expectations for the 2018 to 2022 period, Fitch said.

The challenging €6 billion capital expenditure plan and moderate cut in allowed regulated returns from 2020 led to a breach in the Fitch's leverage guideline for the A rating from 2020, notwithstanding the revised dividend policy, the agency said.

The ratings reflect Red Electrica's low business risk as the natural monopoly electricity transmission owner and operator in Spain, Fitch added.

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