Fitch upgrades Red Electrica short-term rating

Fitch Ratings said it upgraded Red Electrica Corporacion SA's (Red Electrica), Red Electrica de Espana SAU's and Red Electrica Financiaciones SAU's short-term issuer default ratings and short-term senior unsecured ratings to F1 from F2.

The upgrades follow the application of the agency's updated rating criteria, Fitch explained.

The upgrades also are based on an assessment of Red Electrica's strong financial flexibility and financial structure and adequate operating environment, the agency said.

Given the regulated nature of Red Electrica's cash flows and high long-term cash flow visibility, the magnitude of the cash flow stress applied is modest compared with that in cyclical industries, Fitch said.

Red Electrica has an even debt maturity profile with diversified sources of funding, the agency added.

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