© Creditreform Rating AG 2022 
19 October 2022 
1/20 
Creditreform Corporate Issuer / Issue Rating 
Iberdrola S.A. 
 
Summary 
Company 
IBERDROLA S.A. – is the parent company of the Iberdrola Group (hereinafter also referred to as 
‘’Iberdrola’’, or ‘’the Group’’). The Iberdrola Group is a multinational energy corporation based in 
Bilbao, Spain. The Group was established in 1992 and has since then grown into one of the 
largest energy groups worldwide. The Group’s activities range from the production of electricity 
from conventional and renewable resources and the sale and purchase of electricity and gas in 
the wholesale markets, to the transmission and distribution of electricity and gas. It is predom-
inantly active in Brazil, Mexico, Spain, United Kingdom, and the United States of America, but 
also has a smaller presence in many other countries.  
During the 2021 business year Iberdrola generated revenues of EUR 39,114 million (2020: EUR 
33,145 million), EBITDA of EUR 11,516 million (2020: EUR 9,516 million), EBIT of EUR 7,326 million 
(2020: EUR 5,551 million) and net profit of EUR 4,352 million (2020: EUR 3,952 million). 
Rating result 
The current unsolicited corporate issuer rating of Iberdrola S.A. attests a good level of credit-
worthiness representing a low to medium default risk. The main positive factors contributing to 
the rating result are Iberdrola’s balanced financial profile, as well as its large amount of regu-
lated revenues and long-term contracts (PPA’s), which significantly reduces market price and 
volume risks. Furthermore, the geographically diversified asset base and income generation 
also contributes positively to the current rating result. Regulatory risks, particularly with regard 
to the Networks business, are for a large extent mitigated due to the high number of different 
regulatory regimes. The increasing capacity in renewables increases exposure to adverse 
weather conditions. However, this is to a large extent mitigated by a high degree of diversifica-
tion in terms of geography and energy source (Wind, Hydro, Solar). 
Rating object 
Rating information 
Iberdrola S.A.  
 
Creditreform ID: 
2000000597 
Incorporation:   
1992 
Based in:  
Bilbao, Spain 
Main (Industry): 
Energy distribution, generation and transmission 
CEO: 
                 José Ignacio Sánchez Galán 
 
 
 
 
 
 
Rating objects: 
Long-term Corporate issuer Rating: Iberdrola S.A. 
Long-term Corporate Issuer Rating: Rating Iberdrola International B.V. 
Long-term Corporate Issuer Rating: Iberdrola Finanzas S.A.U. 
Long-term Corporate Issuer Rating: Iberdrola Finance Ireland DAC 
Long-term Local Currency Senior Unsecured Issues, issued by Iberdrola International 
B.V. 
Long-term Local Currency Senior Unsecured Issues, issued by Iberdrola Finanzas S.A.U. 
Long-term Local Currency Senior Unsecured Issues, issued by Iberdrola Finance Ire-
land DAC 
 SME / Corporate Issuer Rating: 
 BBB+ / stable 
Type: 
Update 
Unsolicited 
Public rating 
 LT LC Senior Unsecured Issues,:  
 BBB+ / stable 
Other:  
n.r. 
 
 
 
 
 
 
 
 
Rating date: 
19 October 2022 
Monitoring until: 
withdrawal of the rating 
Rating methodology: CRA “Corporate Ratings“ 
CRA “Non-Financial Corporate Issue Ratings“ 
CRA “Rating Criteria and Definitions“ 
Rating history:  www.creditreform-rating.de 
Content 
 
Summary ....................................... 1 
Relevant rating factors ................. 2 
Business 
development 
and 
outlook .......................................... 5 
Structural risk ............................... 7 
Business risk ................................. 8 
Financial risk ............................... 10 
Financial ratio analysis ............... 15 
Analysts 
 
Rudger van Mook 
Lead Analyst 
R.vanMook@creditreform-rating.de 
 
 
Artur Kapica 
Co-Analyst 
A.Kapica@creditreform-rating.de 
 
 
 
Neuss, Germany

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Creditreform Corporate Issuer / Issue Rating 
Iberdrola S.A. 
 
The current volatility on European energy markets have not had a significant effect on the 
Group’s performance as a whole. In the Spanish generation segment, however, performance 
was negatively affected by higher gas prices as it had to source replacement volumes for fixed 
price contracts to offset lower hydro-electric and to a lesser extent wind production volumes in 
Spain following reduced rainfall and lower wind resources.  
The significant share of renewables in Iberdrola’s energy mix reduces the need for future invest-
ments. Nevertheless, in order to retain its leadership position in the energy transition, Iberdrola 
will invest EUR 75 billion in the period between 2020 and 2025 and EUR 150 billion in the period 
up to 2030 to finance the continuance of its energy transition. Investments will most likely be 
accelerated to EUR 13 billion annually between 2023 – 2025. The ambitious investment plan of 
the Group is currently a constraining factor to the rating as the increased cash-outflows put 
credit metrics under pressure.  
Outlook 
The one-year outlook of the rating is stable. Despite the increased volatility on the energy mar-
kets and increased global uncertainty we expect stable development for the Group with contin-
uing strong EBITDA and cash-flow generation. This outlook is based on the fact that most of the 
Group’s procurements have already been secured for the business year 2022 and 2023, the fact 
that gas only contributes approximately 4% to its EBITDA generation in Europe and that it has 
no dependence on Russian oil and gas. Furthermore, the geographically diversified asset base 
is largely protected by regulatory frameworks and market price fluctuations, thus reducing the 
risk for significant downturns in Iberdrola’s operational development.  
Relevant rating factors 
Table 1: Financials I Source: Iberdrola S.A.  Annual Report 2021, standardized by CRA 
Iberdrola S.A. 
Selected key figures of the financial statement analysis 
Basis: Annual accounts and report of 31.12. (IFRS, etc.) 
CRA standardized figures1 
2020 
2021 
Sales (million EUR) 
33,145 
39,114 
EBITDA (million EUR) 
9,516 
11,516 
EBIT (million EUR) 
5,551 
7,326 
EAT (million EUR)  
3,952 
4,352 
EAT after transfer of minority interests (million EUR) 
3,611 
3,885 
Total assets (million EUR) 
112,972 
131,132 
Equity ratio (%) 
41.84 
42.77 
Capital lock-up period (days) 
56.58 
55.65 
Short-term capital lock-up (%) 
36.52 
44.69 
Net total debt / EBITDA adj. (Factor) 
6.20 
5.84 
Ratio of interest expenses to total debt (%) 
2.40 
2.22 
Return on investment (%) 
4.37 
4.09 
 
 
 
                                                                 
1 For analytical purposes, CRA adjusted the original values in the financial statements in the context of its financial ratio 
analysis. For example, when calculating the analytical equity ratio, deferred tax assets, goodwill (entirely or partly), and 
internally generated intangible assets are subtracted from the original equity, whilst deferred tax liabilities are added. Net 
total debt considers all balance sheet liabilities. Therefore, the key financial figures shown often deviate from the original 
values of the company. 
Excerpts from the financial key fig-
ures analysis 2021: 
+Revenue, EBITDA, EBIT, EAT 
+Equity ratio  
+Net total debt / EBITDA adj. (Factor) 
 
- Return on investment 
- Gross margin 
Reference:  
The relevant rating factors (key drivers) 
mentioned in this section, are predom-
inantly based on internal analyses, 
evaluations of the rating process, the 
derived valuations of the analysts par-
ticipating in the rating and, if applica-
ble, other rating committee members. 
The fundamental external sources 
used, are specified in the section “Reg-
ulatory requirements” and “Rules on 
the presentation of credit ratings and 
rating outlooks”.

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Creditreform Corporate Issuer / Issue Rating 
Iberdrola S.A. 
 
 
General rating factors 
 
Diversified geographical asset and concession base  
 
Diversified income generation  
 
High degree of CO2 free electricity generation  
 
High degree of regulated revenues and EBITDA 
 
Good access to financial markets  
 
- 
Capital-intensive business with high ongoing investments 
- 
Exposure to currency fluctuations (especially in emerging markets) 
- 
Increased country risks  
- 
Demand and price risks mainly in the Liberalized business  
- 
Weather dependent (Water, wind and solar resources) 
- 
Regulatory risks  
 
Current rating factors 
 
Increasing revenues and (operating) profit due to growing asset base and strong operating 
performance 
 
Renewables segment performance overcompensated the challenging environment of the 
Liberalized business 
 
Stable development of credit metrics despite significant investments 
 
Strong liquidity as of H1 2022 
 
Growing (regulatory) asset base / Investment plan is proceeding according to plan 
 
Positive tariff adjustments in the Networks business and the consolidation of Neoenergia 
Distribuição Brasília 
 
Supreme court ruling in Spain resulting in a non-recurring gain  
 
- 
Postponement of PNM acquisition due to rejection of agreement by New Mexico Public 
Regulation Commission. Agreement between PNM and Avangrid extended until 2023 
- 
Increasing indebtedness including subordinated indebtedness due to high investment 
pressure 
- 
Increased supply costs due to higher gas and CO2 prices  
- 
Recalculation of deferred taxes due to an increase in the UK corporate tax rate, leading to 
a significant non-recurring tax expense  
- 
Increased global uncertainty and volatility as a result of the war in Ukraine 
Prospective rating factors 
 
Achieving the goals set in the investment plan 2020 – 2025 with retention of credit metrics 
 
Improvement of financial key figures  
 
Improved market conditions  
 
Further increasing amount of regulated revenues  
 
- 
Decreasing operating margins  
- 
Negative regulatory developments  
- 
Deteriorating financial key figures  
- 
Unexpected long Delays or significant cost inflation at the planned Investments 
 
General rating factors summarize the 
key issues that – according to the ana-
lysts as per the date of the rating – have 
a significant or long-term impact on the 
rating, whether positive (+) or negative 
(-). 
Current rating factors are the key fac-
tors that, in addition to the underlying 
rating factors, have an impact on the 
current rating. 
Prospective rating factors are factors 
and possible events which – according 
to the analysts as of the date of the rat-
ing – would most likely have a stabiliz-
ing or positive effect (+) or a weakening 
or negative effect (-) on future ratings, 
if they occurred. This is not an exhaus-
tive list of possible future events with 
potential relevance for future ratings. 
Circumstances can arise that are not in-
cluded in the list of prospective factors 
whose effects are impossible to assess 
at the time of the rating, either because 
these effects are uncertain or because 
the underlying events are deemed un-
likely to occur

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Creditreform Corporate Issuer / Issue Rating 
Iberdrola S.A. 
 
ESG-factors 
CRA generally considers ESG factors (environment, social and governance) within its rating de-
cisions. In the case of Iberdrola S.A. we have not identified any ESG factors with significant influ-
ence.  
Iberdrola made substantial progress in reducing its environmental footprint and thereby con-
tributes to the decarbonization of the energy sector. The Group’s investment plan 2020 – 2025 
foresees investments of EUR 75 billion in total, predominantly to be invested in smart grids and 
renewable energy generation. The electricity grids play an important role in the energy transi-
tion in facilitating smart, efficient and flexible transmission and distribution of renewable energy 
and accommodating the electrification of the global economy. Investments in renewables will 
help reduce CO2 emissions. Iberdrola has a leading position in the generation of emission-free 
electricity. At the end of H1 2022 the Group had 59,522 MW of installed generation capacity, of 
which 42,002 MW (Renewables 38,825 MW and Nuclear energy 3,177 MW) produces emission 
free energy, corresponding to 70.6%. This amount has been slowly but steadily increasing as a 
result of the Group’s previous and current investment programs. Iberdrola has outlined an in-
vestment plan covering the years 2020 – 2025, in which it plans to invest a total of EUR 75 billion, 
largely into its Networks business and Renewables generation capacity. For the period of 2020 
– 2030, Iberdrola forecasts an investment package of EUR 150 billion also with a strong emphasis 
on growth in Renewables and Networks.  
At the end of 2021, the Group’s strategy to decarbonize has led to a 70% reduction in direct 
emissions compared to 2000 with emissions of 60 gCO2/KWh in Europe and 96 GcO2/KWh glob-
ally. Iberdrola’s goal is to reduce its global emissions to 50 GCO2/KWh by 2030 and wants to 
achieve carbon neutrality by 2050.  
Iberdrola is a leader in sustainable finance and at the end of 2021 was the world’s leading cor-
porate group with regard to green bonds issued. At the end of 2021 Iberdrola had issued 15 
green bonds for a total of EUR 11,994 million. Its subsidiaries Avangrid and Neoenergia also 
have outstanding green bonds of USD 2,726 million and BRL 3.56 billion respectively.  
Iberdrola has set clear targets with regard to its environmental footprint, but also with regard 
to social and governance and raised the percentage of women in senior management to 27% 
and 34% in management positions. Iberdrola also continues with its salary equality policy and 
continuously support the best practices in corporate governance.  
A general valid description of Creditreform Rating AG, as well as a valid description of corporate 
ratings for understanding and assessing ESG factors in the context of the credit rating process, 
can be found here. 
ESG factors are factors related to envi-
ronment, social issues and, govern-
ance. For more information, please see 
the "Regulatory requirements". CRA 
generally takes ESG relevant factors 
into account, when assessing the rating 
object and discloses them when they 
have a significant influence on the cre-
ditworthiness of the rating object, lead-
ing to a change in the rating result or 
the outlook.

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Creditreform Corporate Issuer / Issue Rating 
Iberdrola S.A. 
 
Best-case scenario: BBB+ 
In our best-case scenario for one year, we assume a rating of BBB+. We believe an upgrade 
within the period of one year to be unlikely due to the foreseen acceleration of Iberdrola’s in-
vestment program, putting pressure on credit metrics as the Group’s investments in combina-
tion with its dividend policy continue to exceed cash-flow generation. Additionally, the increas-
ing uncertainty with regard to the war in Ukraine, rising interest rates and high inflation are also 
constraining factors to the rating.  
Worst-case scenario: BBB 
In our worst-case scenario for one year, we assume a rating of BBB. This could be the case if the 
Company’s operating cash-flow will decrease, leading to high negative retained cash flow after 
investments, ultimately leading to an increase in borrowings, thus deteriorating the Group’s 
credit metrics. Furthermore, increased risks with regard to a global recession, or a further esca-
lation in the war in Ukraine also could negatively affect the operating performance of the Group.  
Business development and outlook 
During the 2021 business year Iberdrola generated revenues of EUR 39,114 million (2020: EUR 
33,145 million), EBITDA of EUR 11,516 million (2020: EUR 9,516 million), EBIT of EUR 7,326 million 
(2020: EUR 5,551 million) and net profit of EUR 4,352 million (2020: EUR 3,952 million). The higher 
revenues and (operating) profit were mainly driven by the Group’s strong investment program, 
which led to an expanded (regulatory) asset base and increased installed capacity. The higher 
EBITDA was predominantly caused by the factor mentioned above, but also due to positive tariff 
adjustments in the Networks business, as well as several court rulings and legal measures in 
Spain. However, the increase in EBITDA was somewhat offset by COVID-19 effects, with a de-
crease in EBITDA of EUR 250 million in total. Negative currency developments also negatively 
affected EBITDA by EUR 169 million and was mainly due to the depreciation of its main reference 
currencies the US Dollar and the Brazilian Real against the Euro during the 2021 business year. 
The Networks business increased its reported EBITDA significantly against the prior year to EUR 
5,394 million (2020: EUR 4,783 million) largely as a result of an increasing regulatory asset base, 
increased electricity distribution as well as due to positive tariff revisions in the regulatory frame-
works. The Renewable segment more than doubled its reported EBITDA to EUR 5,521 million 
(2020: EUR 2,596 million) due to an increase in average power production in most of its markets, 
as well as additional capacity of 3,156 MW installed during the business year. The Liberalised 
business decreased significantly in terms of reported EBITDA to EUR 905 million (2020: EUR 
2,580 million). The large reduction in operating profit in the Liberalized business was mainly 
caused by the high increase in supply costs resulting from the elevated gas prices, as well as 
increased CO2 prices while selling prices were for to a large extent already fixed.  
 
 
Please note: 
The scenarios are based on infor-
mation available at the time of the rat-
ing. Within the forecast horizon, cir-
cumstances may occur that could lead 
to a change of the rating out of the in-
dicated range.

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Creditreform Corporate Issuer / Issue Rating 
Iberdrola S.A. 
 
Table 2: The Development of individual corporate divisions I Source: Consolidated annual accounts of Iberdrola S.A:  
Iberdrola S.A. according to individual corporate divisions in 2021 
 
 
 
In million. EUR 
 
Networks  
business 
Renewables busi-
ness 
Liberalized busi-
ness 
Other 
 businesses, corpo-
ration and  adjust-
ments 
Revenue 
14,887 
6,036 
22,734 
-4,543 
EBITDA 
5,394 
5,521 
905 
184 
EBIT 
3,362 
4,085 
-170 
29 
On the EBITDA level the Group benefited from a non-recurring event in Spain of EUR 951 million, 
resulting from a Supreme Court ruling concerning a hydro-electric levy derived from law 
15/20212. This effect was slightly offset by implemented efficiency measures of EUR 94 million. 
Earnings before tax increased to EUR 6,301 million (2020: EUR 5,053 million) in comparison to 
the prior year and the Group recognized non-recurring income of EUR 155 million of late pay-
ment interests resulting from the supreme court ruling in Spain. The recognition of the late pay-
ment interests of EUR 155 million were however almost completely offset by higher finance ex-
penses due to increasing indebtedness and an increasing cost of debt. The average cost of debt 
in 2021 increased to 3.24% (2020: 2.86%). The significant increase in EBT was diminished by the 
recognition of deferred taxes due to the recalculation of a new expected tax rate in the UK, 
which will enter into force in 2023, leading to an increase in corporate taxes of EUR 508 million. 
Therefore, the EAT for the year was EUR 3,885 million (2020: EUR 3,611 million).  
During the first six months of the 2022 business year Iberdrola generated reported revenues of 
EUR 24,430 (H1 2021: EUR 18,752 million), reported EBITDA of EUR 6,444 million (H1 2021: EUR 
5,444 million) and net profit of EUR 2,075 million (H1 2021: EUR 1,531 million). During the first 
half of 2022 Iberdrola as a group continued its performance and was relatively unfazed by the 
situation in Ukraine, and by sanctions between the western world and Russia. On Group level 
gas contributed only 4% to EBITDA in Europe and the Group has no dependency on Russian gas 
or oil. Iberdrola Spain however, was affected by the increased volatility and high price environ-
ment on the European markets. As the Euro depreciated against the Group’s most important 
reference currencies, it registered a significant increase of EUR 381 million on reported EBITDA 
during the first half of 2022. Overall, the Company showed positive performance in both seg-
ments. Both the Networks segment and the Electricity production and customers segment2, 
grew throughout all geographies except in Spain. The growth in Networks EBITDA was mostly 
driven by the United States and Brazil. The businesses in the USA recorded a non-recurring 
event of USD 550 million linked to a New York order allowing the accrual of certain regulatory 
assets and USD 125 million by an expanding asset base. The increased EBITDA in Brazil was 
mainly due to tariff adjustments and Inflation (BRL 1,458 million) in the Networks segment. 
These positive factors were slightly offset by a non-recurring event of EUR -195 million in Spain, 
resulting from a court decision and a regulatory order on certain assets. In the Generation seg-
ment growth was mostly driven by Brazil and Spain, and slightly offset by the United States, 
which had lower EBITDA in comparison to the prior year due to a cold snap in Texas in 2021. 
Mexico in turn benefited from the lower EBITDA in 2021, also resulting from the Texas cold snap 
losses in 2021.The growth in Spain, however, was to a large extent offset by a challenging market 
environment. Due to a significant drop in rainfall the hydroelectric facilities in Spain produced 
                                                                 
2 Iberdrola elected to depict the electricity production and customer relationships as one segment instead of differentiating 
between the Renewables segment and the Liberalized segment as a result of the current market situation on the energy 
markets.

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Iberdrola S.A. 
 
significantly less electricity in comparison to the prior year (-45%). This reduction in electricity 
production had to be offset by other sources of electricity. The Group therefore had to source 
gas and coal at much higher prices on the energy market in order to meet its contractual obli-
gations. The high price environment and volatile energy markets therefore negatively affected 
the profit of Iberdrola Spain. Despite these factors the Group managed to achieve growth in 
Spain in the generation segment. The growth in Brazil was mainly due to better performance of 
the Termopernambuco combined cycle plant, which due to the shutdowns caused by gas supply 
restrictions this year has purchased energy at lower prices in order to fulfil its contracts with 
distributors. The increased (regulatory) asset base also played a role in the rising operating 
profit in both segments 
According to Iberdrola’s strategy EUR 75 billion will be allocated towards investments between 
the period of 2020 – 2025 to drive the energy transition and to decarbonize its electricity gener-
ation profile. During 2021 EUR 9,940 million was invested, of which approximately 90% to the 
Networks business and Renewable generation, which is in line with its strategy. During the first 
six months of 2022 Iberdrola made gross investments of EUR 4,741 million and it is expected 
that the rate of investments will accelerate during the second half of the year. Furthermore, 
according the Group’s outlook 2020 – 2025 it expects to ramp up investments to EUR 13 billion 
annually during the period 2023 – 2025 with EBITDA and net profit expected to grow to EUR 15 
billion and EUR 5 billion annually respectively by 2025. As of H1 2022 the Group has approxi-
mately renewable capacity of 10,800 MW currently under construction or secured with PPA’s. 
Iberdrola’s subsidiary, Avangrid INC. has undertaken to acquire 100% of the share capital of 
PNM Resources Inc., an American electric utility, which conducts regulated business, primarily 
in the transmission, distribution and generation of electricity in the states of New Mexico and 
Texas. In 2021 the Company generated operating revenues of USD 1.78 billion and EBITDA of 
EUR 592 million. The total price for the entire share capital will amount to approximately USD 
4,318 million and was expected to close at the end of last year. However, on December 8 PNM 
Resources published, that the New Mexico Public Regulation Commission rejected the agree-
ment that had been reached with the parties in the PNM / Avangrid merger. On the third of 
January 2022 it was announced that PNM Resources and Avangrid had entered into an amend-
ment of their merger agreement extending the end date to April 20, 2023 and filed a Notice of 
Appeal with the New Mexico Supreme Court. There is no further information available as of yet. 
Iberdrola reported strong growth and is investing mainly in decarbonization of its generation 
fleet and digitization of its Network assets. Its strategy foresees an increasing focus on the seg-
ments Networks and Renewables, which will further solidify its EBITDA and stable cash-flow 
generation. We believe however, that the increase in EBITDA will in the short turn be overcom-
pensated by increasing indebtedness and cost of debt.  
Structural risk 
Iberdrola S.A. is a holding company and the parent company of the Iberdrola Group, which is 
headquartered in Bilbao, Spain. The Group’s activities are focussed on the energy sector and 
predominantly encompass the production, transmission, distribution and supply of electricity. 
The parent Company, Iberdrola S.A., functions as a holding company for the Group’s invest-
ments, and defines and supervises the policies, strategies and general guidelines of the Group. 
Under the parent Company Iberdrola S.A., the Group has country sub-holding companies, which 
hold the investments of the Group and are mainly organized by the country in which they oper-
ate. These (national) sub-holding companies have their own Board of Directors, CEO’s and inter-
nal auditing processes. Their main task is to implement and to monitor the general policies,

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strategies and directives ordered by the Group in accordance with the country-specific legisla-
tion in which the sub-holding operates. The Group mainly operates in five countries: Spain, Bra-
zil, United Kingdom, United States of America and Mexico through their national sub-holdings, 
which in turn hold the regional operating entities. The Group also has an international presence 
in Portugal, France, Italy, Germany, Greece, Hungary, Romania, Cyprus, Australia, Japan and Po-
land.  
The Group’s sub-holding Companies are: 
 
Iberdrola España S.A.U. (100% ownership) 
 
Scottisch Power Ltd. (100% ownership) 
 
Avangrid Inc. (81.50% ownership) 
 
Neoenergia S.A. ( 52.91% share ownership) 
 
Iberdrola México S.A. de C.V. (100% ownership) 
 
Iberdrola Participaciones S.A.U. (100% ownership) 
 
Iberdrola energía Internacional S.L.U.(100% ownership) 
Each sub-holding company holds the interest of one or more head of business company. These 
head of business companies lead a certain business in a respective country, assume executive 
responsibilities and are responsible for the day-to-day control of their respective businesses.  
The overall strategy of the Group is defined by the Board of directors of the Group. It determines 
the general policies, focuses its activities, defines and supervises the overall Group strategy and 
makes decisions on matters that fall outside of the scope of authority of the management team. 
All members of the board are external directors except for the Chairman, who is the CEO of the 
Group. The CEO and his management team are entrusted with the implementation of the strat-
egy. For matters that are not within the management team’s authority it needs to consult the 
Board of Directors. The Board of Directors in turn has for certain matters consult the general 
shareholders meeting for matters not within their scope of authority.  
We consider the structural risk profile of Iberdrola to be low. The activities of the group are 
generally guided by regulatory requirements and frameworks. The Group structure is organized 
based on the strategic business units and are managed independently within the scope of the 
Group strategy in order to implement its policies in accordance with country specific legislation 
and regulatory frameworks. The structure simplifies the decision making process in the day-to-
day management of the Group. We believe that the Group’s legal as well as corporate govern-
ance structures are sufficiently developed and have not detected any abnormalities. 
Business risk 
Iberdrola operates in the energy industry, and its main activities are the production of electricity 
from both renewable and conventional energy sources, the sale and purchase of electricity and 
gas in wholesale markets, the transmission and distribution of electricity, retailing of electricity 
and gas, as well as related activities, mainly in the energy sector. The Group divided its activities 
into four different business segments: Network business, Liberalized business, Renewable busi-
ness, and Other businesses, which includes the non-power businesses. 
In the Networks business segment, the Company operates in Brazil, the United Kingdom, the 
Unites States of America and Spain. The Group’s activities comprise distribution and transmis-
sion, mainly of electricity, and the distribution of gas in the United States. The Networks business 
is regulated by regulatory cycles, which determine the tariffs for the distribution and transmis-
sion of energy and gas. The duration and tariff system of regulatory cycles differ per country or 
even region, which reduces the risk of a significant impact on the Group due to regulatory 
changes in the framework. The tariff systems are generally based on operating costs and cost

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of capital of the regulatory asset base, as well as an estimated volume that the Group will trans-
mit or distribute in a given year. These tariff systems are set for a certain period and often lead 
to relatively stable and predictable cash flows.  
Total electricity generation of the Group had a generation capacity of 59,522 MW as of H1 2022, 
of which approximately 65% of the Group’s installed capacity is in the Renewables segment. 
Over the last 12 months an additional 3,400 MW of new renewable energy production capacity 
has been installed As of H1 2022 the Renewables segment had a capacity of 38,722 MW (2021: 
38,136 MW) as of 30.06.2022, of which 19,683 MW was onshore wind, 14,121 MW of hydro-
electric , 3448 MW solar, 1,258 MW offshore wind and 198 MW batteries. Additionally, the Group 
has a 3,177 MW capacity of nuclear energy at its disposal. This makes approximately 70% of the 
Group’s generated electricity emission free. 
The majority of electricity from renewable sources is sold through long-term contracts (PPA’s – 
Power Purchase Agreements) in which volumes and prices are agreed upon for longer periods 
of time, thereby reducing market price and volume risk. A shortfall in renewable energy produc-
tion might cause unexpected extra costs as replacement values have to be sourced in the energy 
markets at possibly much higher values in order to meet contractual obligations of long-term 
electricity contracts. This risk is mitigated by the diversification of energy source and geograph-
ical diversification. The Deregulated business is, in contrast to the Renewables and Networks 
business segments, more exposed to general market conditions (volume and price risks) and 
commodity risks (coal, nuclear fuel, natural gas etc.) 
The Group generates the majority of its EBITDA from regulatory activities or long-term contracts 
(PPA’s), which significantly reduces its exposure to general market conditions such as price and 
volume risks. During the 2021 business year, the Group generated reported EBITDA of EUR 
12,006 million, of which EUR 5,394 million was generated by the Network business and EUR 
5,521 million by the Renewables business. Both of these segments are considered to be almost 
completely regulatory activities or generate electricity from PPA’s. Additionally, the Group’s op-
erating profit is well-diversified both geographically and by its activities. During the 2021 busi-
ness year 52.9% (2020: 42.5%) of EBITDA was generated within Spain, 11.6% (2020: 19.7%) in the 
United Kingdom, 10.0% (2020: 9.2%) in the United States, 16.8% (2020: 13.7%) in Brazil, 7.5% 
(2020: 12.4%) in Mexico and 1.1% (2020: 2.4%) in the remaining parts of the world. The relative 
operating profit in Spain was significantly higher than usual due to non-recurring income of EUR 
951 million after a Supreme Court ruling concerning the hydroelectric levy. 
According to its 2020 – 2025 investment plan the Group aims to invest approximately EUR 75 
billion in the period between 2020 and 2025, largely comprising investments that are aligned 
with decarbonization and the energy transition. According to Iberdrola’s strategy the Company 
aims to invest 51% of its investments in renewable energy production in order to further decar-
bonize its generation fleet. 40% of its targeted investments will be allocated to the Networks 
business to update its networks, facilitating the smart transmission and distribution of electricity 
and gas. The residual 9% will be invested in the remaining generation fleet and trading activities. 
This will, according to the plan increase EBITDA generation up to EUR 15 billion by 2025 and 
further solidify its EBITDA generation in terms of regulated revenues, which will also reduce 
market risks and is in line with its overall strategy.  
We assess Iberdrola’s business risk profile as low to moderate; the main reason for this is the 
high proportion of EBITDA generated by regulated business activities and through long-term 
contracts, which reduces the exposure to general market risks significantly. Having a high de-
gree of regulatory activities, however, exposes Iberdrola to political and regulatory changes, 
which could adversely affect the Group. The risk profile of the Group is also increased due to its

© Creditreform Rating AG 2022 
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Creditreform Corporate Issuer / Issue Rating 
Iberdrola S.A. 
 
relatively high percentage of activities in emerging economies. The Group’s EBITDA and asset 
base are geographically well-diversified, thus mitigating the potential impact of these risk fac-
tors. The Group is well-positioned in its energy mix, with one of the lowest CO2 output per unit 
of MWh, thereby lowering the risks of being required to modernize its entire energy mix in order 
to comply with regulations. The influence from the war in Ukraine has remained limited so far, 
as the Group only receives a small amount of gas from Russia and no Russian oil at all.  
Financial risk 
For analytical purposes, CRA adjusted the original values in the financial statements in the con-
text of its financial ratio analysis. Contrary to our normal practice, we deducted the goodwill 
shown on the balance sheet from equity only by 50%, suggesting a certain recoverability of 
goodwill. The following descriptions and indicators are based primarily on these adjustments.  
Iberdrola’s balance sheet total has grown rapidly over the last couple of years, mainly driven by 
the Group’s extensive investment program. In 2021 the Group once again significantly increased 
its adjusted balance sheet total to EUR 131,132 million (2020: EUR 112,972 million). Increases 
were seen in particular in PPE. Other factors, such as financial instruments and other current 
assets also caused the balance sheet to increase. This trend of a growing balance sheet is ex-
pected to continue as the current strategy with corresponding investments will continue to be 
pursued. 
If Iberdrola is to achieve the EUR 75 billion of investments in the period 2020 – 2025 the invest-
ment pressure for the Group will most likely increase over the next years. The financial manage-
ment of the Group foresees required funds of EUR 94 billion during the period, in order to fi-
nance investments and pay dividends. Expected is that 67% will come from funds from opera-
tions and cash management of the Group, while the residual amount will be financed from ad-
ditional debt, hybrid instruments and asset rotation as operating cash flow is generally insuffi-
cient to cover forecasted investments. During the business year 2021 Iberdrola generated neg-
ative cash flow after investments of EUR -1,382 million (2020: EUR 1,703 million) and negative 
cash-flow after investments and dividends of EUR -2,181 million (2020: EUR 991 million). 
At the base of Iberdrola’s financial profile stands it equity, which increased to EUR 56,081 million 
(2020: EUR 47,269 million). This was primarily driven by a higher net result, positive OCI move-
ments, of which translation differences, valuation adjustments of cash flow hedges and actuarial 
gains on pension schemes. Additionally, equity was increased by the further issuance of a EUR 
2,750 million hybrid instrument that was fully allocated to equity3. This led to a slight increase 
in equity ratio to 42.77% (2020: 41.84%) despite increasing investment pressure. 
The Group’s indebtedness at the end of 2021 increased to EUR 43,213 million (2020: 40,687 
million). Driven by its investment program Iberdrola expects its net debt to increase to EUR 56.1 
billion in 2025, without hybrid instruments. Over recent years, the Group has been able to main-
tain stable leverage through the issuance of hybrid instruments and it also expects to maintain 
stable reported ratios throughout the plan. However, it is noteworthy that our treatment of sub-
ordinated hybrid instruments will potentially affect the future development of the Group’s ana-
lytical equity. As the remaining time to maturity of hybrid instruments diminishes, the portion 
which is allocated to equity will decrease, which in turn will lead to a decrease in equity and an 
increase in indebtedness and might deteriorate consolidated leverage. We however do not ex-
pect any significant changes in the near to middle term. The maturity profile of its indebtedness 
                                                                 
3 Perpetual bonds with a maturity date longer than 5 years will be 100% allocated to equity, with a maturity date between 
1 and 5 years for 50% to equity and 50% to liabilities, and maturity date shorter than 1 year to liabilities.

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Creditreform Corporate Issuer / Issue Rating 
Iberdrola S.A. 
 
is well distributed and we do not believe that this will give rise to any problems. Additionally, the 
Group has good access to the capital markets in order to refinance any indebtedness that needs 
to be redeemed. 
The Group’s financial key metrics have remained relatively stable despite increasing indebted-
ness, as its EBITDA base has also increased. As of the end of 2021 the Group reported a Net total 
debt /EBITDA adj. of 5.91 (2020: 6.20), and the EBITDA and EBIT interest coverage stood at 6.96 
(2020: 6.02) and 4.43 (2020: 3.52) respectively.  
As of the end of H1 2022 the liquidity position totaled EUR 24,963 million, including available 
credit lines. We consider the current liquidity position of Iberdrola to be good, as the current 
liquidity position alone would be sufficient to meet all of its current liabilities, as of H1 2022. 
Additionally, the Group continues to have a strong capital market access. 
Despite the Group’s significant investment program, we believe the financial profile to be sound 
and the risks manageable. This assessment is based on Iberdrola’s solid assets and financing 
structure, as well as on its strong cash-generation capacity. The Group has reported strong 
growth with stable development of credit metrics over recent years. Its strategy foresees a larger 
focus on the segments Networks and Renewables, which will further solidify its EBITDA and sta-
ble cash-flow generation. However, as indebtedness continue to rise and our hybrid instruments 
will slowly be partially allocated to liabilities we believe that, credit metrics might slowly deteri-
orate over time despite rising operating profit if it does not find any durable equity solutions. 
Issue rating 
In addition to the rating of Iberdrola S.A., the following issuers and their issues (see below) have 
been rated: 
 
Iberdrola International B.V. 
 
Iberdrola Finanzas S.A.U 
 
Iberdrola Finance Ireland DAC 
 
Long-Term Local Currency Senior Unsecured Issues issued by Iberdrola Finanzas S.A.U. 
 
Long-Term Local Currency Senior Unsecured Issues issued by Iberdrola International 
B.V. 
 
Long Term Local Currency Senior Unsecured Issues issued by Iberdrola Finance Ire-
land DAC 
Issuer Rating of Iberdrola International B.V.  
Iberdrola International B.V. is a company with limited liability under the laws of the Netherlands 
and was incorporated in 1992. The company is wholly owned by Iberdrola S.A. and its financial 
statements are fully consolidated in the financial statements of the Group. The issuer’s principal 
activity is the provision of treasury services to the Iberdrola Group. The parent company issued 
an unconditional and irrevocable guarantee on a full-recourse basis with respect to its obliga-
tions arising from the outstanding bonds. The unsolicited corporate issuer rating of Iberdrola 
International B.V. is therefore equal to the rating of Iberdrola S.A. The rating result is BBB+ with 
stable outlook.  
Issuer Rating of Iberdrola Finanzas S.A.U. 
Iberdrola Finanzas S.A.U. is a company operating under Spanish law and was incorporated in 
2005. The company is wholly owned by Iberdrola S.A. and its financial statements are fully con-
solidated in the financial statements of the Group. The issuer’s principal activity is the issuance

© Creditreform Rating AG 2022 
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Creditreform Corporate Issuer / Issue Rating 
Iberdrola S.A. 
 
of preferential shares and other marketable debt instruments in Spanish and foreign organised 
and secondary markets. Iberdrola S.A. has guaranteed all existing bond issuances. Since the 
guaranteed bond issuances represent all issued debt, the unsolicited corporate issuer rating of 
Iberdrola Finanzas S.A.U. is set equal to the rating of Iberdrola S.A.  The rating result is therefore 
BBB+ with stable outlook. 
Issuer Rating of Iberdrola Finance Ireland DAC  
Iberdrola Finance Ireland DAC is an Irish-registered company and was incorporated in 2008. The 
company is wholly owned by Iberdrola S.A. and its financial statements are fully consolidated in 
the financial statements of the Group. The issuer’s principal activity is to raise financing for the 
Group by way of issuing debt securities. All the notes issued by Iberdrola Finance Ireland DAC 
are guaranteed by Iberdrola S.A. The guarantee on the notes by Iberdrola S.A. leaves no net 
credit risk for the issuer. The unsolicited corporate issuer rating of Iberdrola Finance Ireland 
DAC is therefore set equal to the rating of Iberdrola S.A.  The rating result is therefore BBB+ with 
stable outlook.  
Issue Rating of the Long Term Local Currency Senior Unsecured Issues, issued by 
Iberdrola Finanzas S.A.U. 
This unsolicited issue rating is exclusively valid for the long-term senior unsecured issues de-
nominated in euros, issued by Iberdrola Finanzas S.A.U. and which are included in the list of 
ECB-eligible marketable assets. The ECB list of eligible marketable assets can be found on the 
website of the ECB. 
The Notes have been issued within the framework of Iberdrola S.A.’s EMTN-Program, most re-
cently renewed on 1 June 2022. The issuer in the framework of this program is Iberdrola Finan-
zas S.A.U. The total nominal value of the bonds issued must not exceed EUR 30,000 million. 
According to the prospectus as of 1 June 2022, the notes benefit from a negative pledge provi-
sion, and a cross default clause. A change of control clause is optional in the final terms of the 
notes. We have assigned the long-term senior unsecured issues issued by Iberdrola Finanzas 
S.A.U. a rating of BBB+ with stable outlook. This decision is mainly based on the corporate rating 
of Iberdrola S.A. Other types of debt instruments or issues denominated in other currencies 
have not been rated by CRA. For a list of all currently valid ratings and additional information, 
please consult the website of Creditreform Rating AG. 
Issue Rating of the Long Term Local Currency Senior Unsecured Issues, issued by 
Iberdrola International B.V.  
This unsolicited issue rating is exclusively valid for the long-term senior unsecured issues de-
nominated in euros, issued by Iberdrola International B.V. and which are included in the list of 
ECB-eligible marketable assets. The ECB list of eligible marketable assets can be found on the 
website of the ECB. 
The Notes have been issued within the framework of Iberdrola S.A.’s EMTN-Program. Iberdrola 
International B.V. is no longer an issuer under the terms of the latest base prospectus of the 
EMTN-program for future bond issues, most recently renewed on 1 June 2022. The last base 
prospectus that included Iberdrola International B.V. as an issuer dates from 1 August 2018. The 
Company continues to hold several outstanding bonds rated by CRA.  
According to the prospectus, the notes benefit from a negative pledge provision, and a cross 
default clause. A change of control clause is optional in the final terms of the notes. We have 
assigned the long-term senior unsecured issues issued by Iberdrola International B.V. a rating

© Creditreform Rating AG 2022 
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Creditreform Corporate Issuer / Issue Rating 
Iberdrola S.A. 
 
of BBB+ with stable outlook. This decision is mainly based on the corporate rating of Iberdrola 
S.A. Other types of debt instruments or issues denominated in other currencies have not been 
rated by CRA. For a list of all currently valid ratings and additional information, please consult 
the website of Creditreform Rating AG 
Issue Rating of the Long-Term Local Currency Senior Unsecured Issues, issued by 
Iberdrola Finance Ireland DAC  
This issue rating is exclusively valid for the long-term senior unsecured issues denominated in 
euros, issued by Iberdrola Finance Ireland DAC and which are included in the list of ECB-eligible 
marketable assets. The ECB list of eligible marketable assets can be found on the website of the 
ECB. 
The notes have been issued within the framework of Iberdrola’s Global Medium Term Note Pro-
gram. The last prospectus dates from 29 July 2015 and is no longer valid. The maximum amount 
issued under this program cannot exceed EUR 1.500 million; the issuer in the context of this 
program is Iberdrola Finance Ireland DAC.  
According to the last prospectus of 29 July 2015, the notes benefit from a negative pledge pro-
vision and a cross default clause. We have assigned the long-term senior unsecured notes is-
sued by Iberdrola Finance Ireland DAC a rating of BBB+ with stable outlook. This decision is 
mainly based on the corporate rating of Iberdrola S.A. Other types of debt instruments or issues 
denominated in other currencies have not been rated by CRA. For a list of all currently valid 
ratings and additional information please consult the website of Creditreform Rating AG. 
Overview 
Table 3: Overview of CRA Ratings l Source: CRA  
Rating objects 
Detailed Information 
Date 
Rating 
Iberdrola S.A.  
19.10.2022 
BBB+ / stable 
Iberdrola International B.V.  
19.10.2022 
BBB+ / stable 
Iberdrola Finanzas S.A.U. 
19.10.2022 
BBB+ / stable 
Iberdrola Finance Ireland DAC 
19.10.2022 
BBB+ / stable 
Long-Term-Local-Currency Senior Unsecured Issues  issued by 
Iberdrola Finanzas S.A.U. 
19.10.2022 
BBB+ / stable 
Long-Term-Local-Currency Senior Unsecured Issues – issued by 
Iberdrola International B.V. 
19.10.2022 
BBB+ / stable 
Long-Term-Local-Currency Senior Unsecured Issues, issued by 
Iberdrola Finance Ireland DAC 
19.10.2022 
BBB+ / stable 
Other 
-- 
n.r.

© Creditreform Rating AG 2022 
19 October 2022 
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Creditreform Corporate Issuer / Issue Rating 
Iberdrola S.A. 
 
Table 4: overview of Iberdrola International B.V. and Iberdrola Finanzas S.A.U.’s EMTN Program I Source: Iberdrola S.A.  
Issue Details  
Volume 
EUR 30.000.000.000 
Maturity 
Depending on 
the respective bond 
Issuer 
Iberdrola International B.V4. 
Iberdrola Finanzas S.A.U. 
Coupon 
Depending on 
the respective bond 
Arrangers 
Barclays 
Currency 
Depending on 
the respective bond 
Credit Enhancement 
- 
ISIN 
Depending on 
the respective bond 
 
Table 5: overview of Iberdrola Finance Ireland’s GMTN Program I Source: Iberdrola S.A.  
Issue Details  
Volume 
EUR 1.500.000.000 
Maturity 
Depending on 
the respective bond 
Issuer 
Iberdrola Finance Ireland DAC. 
Coupon 
Depending on 
the respective bond 
Arrangers 
Santander Global Banking & Mar-
kets 
Currency 
Depending on 
the respective bond 
Credit Enhancement 
- 
ISIN 
Depending on 
the respective bond 
All future LT LC senior unsecured Notes that will be issued by Iberdrola International B.V., 
Iberdrola Finanzas S.A.U. or Iberdrola Finance Ireland DAC under the current Guaranteed EMTN 
and GMTN program, denominated in Euro and included in the list of ECB-eligible marketable 
assets will, until further notice, receive the same ratings as the current LT LC senior unsecured 
Notes issued under the EMTN and GMTN program. Notes issued under the program in any cur-
rency other than Euro, or other types of debt instruments, have not yet been rated by CRA. For 
a list of all currently valid ratings and additional information, please consult the website of 
Creditreform Rating AG. 
 
 
                                                                 
4 Iberdrola International B.V. is no longer an issuer under the latest base prospectus of 1 June 2022

© Creditreform Rating AG 2022 
19 October 2022 
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Creditreform Corporate Issuer / Issue Rating 
Iberdrola S.A. 
 
Financial ratio analysis 
Table 6: Financial key ratios |Source: Iberdrola S.A., consolidated annual report 2021, structured by CRA 
Asset Structure 
2018 
2019 
2020 
2021 
Fixed asset intensity (%) 
84.97 
83.76 
81.93 
78.84 
Asset turnover 
0.35 
0.34 
0.30 
0.33 
Asset coverage ratio (%) 
64.31 
64.02 
63.94 
63.61 
Liquid funds to total assets (%) 
2.70 
1.87 
3.03 
3.08 
Capital Structure 
 
 
 
 
Equity ratio (%) 
43.05 
42.32 
41.84 
42.77 
Short-term-debt ratio (%) 
20.20 
21.32 
20.34 
22.71 
Long-term-debt ratio (%) 
11.60 
11.31 
10.55 
7.38 
Capital lock-up period (in days) 
54.73 
51.07 
56.58 
55.65 
Trade-accounts-payable ratio (%) 
5.07 
4.51 
4.55 
4.55 
Short-term capital lock-up (%) 
29.30 
35.72 
36.52 
44.69 
Gearing 
1.26 
1.32 
1.32 
1.27 
Leverage 
2.33 
2.34 
2.38 
2.36 
Financial Stability 
 
 
 
 
Cash flow margin (%) 
18.83 
22.02 
22.94 
20.12 
Cash flow ROI (%) 
6.49 
7.23 
6.86 
6.11 
Total debt / EBITDA adj. 
6.50 
6.46 
6.55 
6.25 
Net total debt / EBITDA adj. 
6.19 
6.25 
6.20 
5.91 
ROCE (%) 
9.15 
9.13 
8.74 
9.67 
Total debt repayment period 
6.43 
11.28 
9.52 
6.45 
Profitability 
 
 
 
 
Gross profit margin (%) 
45.88 
46.54 
50.70 
45.45 
EBIT interest coverage 
3.29 
3.47 
3.52 
4.43 
EBITDA interest coverage 
5.51 
5.70 
6.02 
6.96 
Ratio of personnel costs to total costs (%) 
7.50 
7.65 
8.31 
7.54 
Ratio of material costs to total costs (%) 
54.96 
54.33 
50.29 
55.37 
Cost income ratio (%) 
86.77 
85.87 
85.75 
83.78 
Ratio of interest expenses to total debt (%) 
2.80 
2.66 
2.40 
2.20 
Return on investment (%) 
4.33 
4.52 
4.37 
4.09 
Return on equity (%) 
7.58 
8.25 
8.31 
8.42 
Net profit margin (%) 
9.34 
10.27 
11.69 
10.93 
Operating margin (%) 
15.22 
16.23 
16.42 
18.39 
Liquidity 
 
 
 
 
Cash ratio (%) 
13.38 
8.76 
14.92 
13.54 
Quick ratio (%) 
52.19 
46.66 
54.46 
63.57 
Current ratio (%) 
74.41 
76.19 
88.84 
93.19

© Creditreform Rating AG 2022 
19 October 2022 
16/20 
Creditreform Corporate Issuer / Issue Rating 
Iberdrola S.A. 
 
Appendix 
Rating history 
The rating history is available under https://www.creditreform-rating.de/en/ratings/published-
ratings.html. 
Table 7: Corporate issuer Rating of Iberdrola S.A. l Source: CRA 
Event 
Rating date 
Publication date 
Monitoring period 
Result 
Initial rating 
03.05.2019 
16.05.2019 
11.08.2020 
BBB+ / stable 
Table 8: Corporate issuer Rating of Iberdrola International B.V.  
Event 
Rating date 
Publication date 
Monitoring period 
Result 
Initial rating 
03.05.2019 
16.05.2019 
11.08.2020 
BBB+ / stable 
Table 9: Corporate Issuer Rating of Iberdrola Finanzas S.A.U. 
Event 
Rating date 
Publication date 
Monitoring period 
Result 
Initial rating 
03.05.2019 
16.05.2019 
11.08.2020 
BBB+ / stable 
Table 10: Corporate Issuer Rating of Iberdrola Finance Ireland DAC 
Event 
Rating date 
Publication date 
Monitoring period 
Result 
Initial rating 
03.05.2019 
16.05.2019 
11.08.2020 
BBB+ / stable 
Table 11: LT LC Senior Unsecured issues issued by Iberdrola Finanzas S.A.U 
Event 
Rating date 
Publication date 
Monitoring period 
Result 
Initial rating 
03.05.2019 
16.05.2019 
11.08.2020 
BBB+ / stable 
Table 12: LT LC Senior Unsecured issues issued by Iberdrola International B.V. 
Event 
Rating date 
Publication date 
Monitoring period 
Result 
Initial rating 
03.05.2019 
16.05.2019 
11.08.2020 
BBB+ / stable 
Table 13: LT LC Senior Unsecured issues issued by Iberdrola Finance Ireland DAC 
Event 
Rating date 
Publication date 
Monitoring period 
Result 
Initial rating 
03.05.2019 
16.05.2019 
11.08.2020 
BBB+ / stable 
 
Regulatory requirements 
The rating5 was not endorsed by Creditreform Rating AG (Article 4 (3) of the CRA-Regulation). 
The present rating is, in the regulatory sense, an unsolicited rating, that is public. The analysis 
was carried out on a voluntary basis by Creditreform Rating AG, which was not commissioned 
by the Issuer or any other third party to prepare the present rating. 
                                                                 
5 In these regulatory requirements the term "rating" is used in relation to all ratings issued by Creditreform Rating AG in 
connection to this report. This may concern several companies and their various issues.

© Creditreform Rating AG 2022 
19 October 2022 
17/20 
Creditreform Corporate Issuer / Issue Rating 
Iberdrola S.A. 
 
The rating is based on the analysis of published information and on internal evaluation methods 
for the assessment of companies and issues. The rating object was informed of the intention of 
creating or updating an unsolicited rating before the rating was determined. 
The rating object participated in the creation of the rating as follows: 
Unsolicited Corporate Issuer / Issue Rating 
With rated entity or related third party participation 
Yes 
With access to internal documents 
No 
With access to management 
No 
The rating was conducted based on the following information. 
A management meeting did not take place within the framework of the rating process. 
The documents and information gathered were sufficient to meet the requirements of Credit-
reform Rating AG's rating methodologies. 
The rating was conducted based on the following rating methodologies and the basic document. 
Rating methodology 
Version number 
Date 
Corporate Ratings 
2.4 
01.07.2022 
Non-financial Corporate Issue Ratings  
1.0 
October 2016 
Rating Criteria and Definitions  
1.3 
January 2018 
The documents contain a description of the rating categories and a definition of default.  
The rating was carried out by the following analysts: 
Name 
Function 
Mail-Address 
Rudger van Mook 
Lead-analyst 
R.vanMook@creditreform-rating.de 
Artur Kapica 
Analyst 
A.Kapica@creditreform-rating.de 
 
The rating was approved by the following person (person approving credit ratings, PAC): 
Name 
Function 
Mail-Address 
Philip Michaelis 
PAC 
P.Michaelis@creditreform-rating.de 
On 19 October 2022, the analysts presented the rating to the rating committee and the rating 
was determined. The rating result was communicated to the company on 20 October 2022. 
There has not been a subsequent change to the rating. 
The rating will be monitored until Creditreform Rating AG withdraws the rating. The rating can 
be adjusted as part of the monitoring, if crucial assessment parameters change. 
In 2011, Creditreform Rating AG was registered within the European Union according to EU Reg-
ulation 1060/2009 (CRA-Regulation). Based on this registration, Creditreform Rating AG is al-
lowed to issue credit ratings within the EU and is bound to comply with the provisions of the 
CRA-Regulation. 
ESG-factors  
You can find out whether ESG factors were relevant to the rating in the upper section of this 
rating report "Relevant rating factors". 
A general valid description for Creditreform Rating AG, as well as a valid description of corporate 
ratings for understanding and assessing ESG factors in the context of the credit rating process, 
can be found here.

© Creditreform Rating AG 2022 
19 October 2022 
18/20 
Creditreform Corporate Issuer / Issue Rating 
Iberdrola S.A. 
 
Conflict of interests 
No conflicts of interest were identified during the rating process that might influence the anal-
yses and judgements of the rating analysts involved or any other natural person whose services 
are placed at the disposal or under the control of Creditreform Rating AG and who are directly 
involved in credit rating activities or in approving credit ratings and rating outlooks. 
In the event of providing ancillary services to the rated entity, Creditreform Rating AG will dis-
close all ancillary services in the credit rating report at this point:  
No ancillary services in the regulatory sense were carried out for this rating object.  
 
Rules on the presentation of credit ratings and rating outlooks 
The approval of credit ratings and rating outlooks follows our internal policies and procedures. 
In line with our ”Rating Committee Policy”, all credit ratings and rating outlooks are approved by 
a rating committee based on the principle of unanimity.  
To prepare this credit rating, Creditreform Rating AG has used following substantially material 
sources: 
Corporate issuer rating: 
1. Annual report 
2. Website 
3. Internet research 
Corporate issue rating:  
1. Corporate issuer rating incl. information used for the corporate issuer rating  
2. Documents on issues / instruments 
There are no other attributes and limitations of the credit rating or rating outlook other than 
those displayed on the Creditreform Rating AG website. Furthermore, Creditreform Rating AG 
considers as satisfactory the quality and extent of information available on the rated entity. With 
respect to the rated entity, Creditreform Rating AG regarded available historical data as suffi-
cient. 
Between the time of disclosure of the credit rating to the rated entity and the public disclosure, 
no amendments were made to the credit rating. 
The Basic Data Information Card indicates the principal methodology or version of methodology 
that was used in determining the rating, with a reference to its comprehensive description.  
In cases where the credit rating is based on more than one methodology or where reference 
only to the principal methodology might cause investors to overlook other important aspects of 
the credit rating, including any significant adjustments and deviations, Creditreform Rating AG 
explains this fact in the credit rating report and indicates how the different methodologies or 
other aspects are taken into account in the credit rating. This information is integrated in the 
credit rating report.  
The meaning of each rating category, the definition of default or recovery and any appropriate 
risk warning, including a sensitivity analysis of the relevant key rating assumptions such as math-
ematical or correlation assumptions, accompanied by worst-case scenario credit ratings and 
best-case scenario credit ratings are explained.

© Creditreform Rating AG 2022 
19 October 2022 
19/20 
Creditreform Corporate Issuer / Issue Rating 
Iberdrola S.A. 
 
The date at which the credit rating was initially released for distribution and the date when it 
was last updated, including any rating outlooks, is indicated clearly and prominently in the Basic 
Data Information Card as a “rating action”; initial release is indicated as “initial rating”, other 
updates are indicated as an “update”, “upgrade” or “downgrade”, “not rated”, “confirmed”, “se-
lective default” or “default”.  
In the case of a rating outlook, the time horizon is provided during which a change in the credit 
rating is expected. This information is available within the Basic Data Information Card. 
In accordance with Article 11 (2) EU-Regulation (EC) No 1060/2009, a registered or certified credit 
rating agency shall make available, in a central repository established by ESMA, information on 
its historical performance data including the rating transition frequency and information about 
credit ratings issued in the past and on their changes. Requested data are available at the ESMA 
website. 
An explanatory statement of the meaning of Creditreform Rating AG’s default rates are available 
in the credit rating methodologies disclosed on the website.

© Creditreform Rating AG 2022 
19 October 2022 
20/20 
Creditreform Corporate Issuer / Issue Rating 
Iberdrola S.A. 
 
Disclaimer 
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of Conduct, which has been published on the web pages of Creditreform Rating AG. In this Code 
of Conduct, Creditreform Rating AG commits itself – systematically and with due diligence – to 
establish its independent and objective opinion as to the sustainability, risks and opportunities 
concerning the enterprise or the issue under review.  
Future events are uncertain, and forecasts are necessarily based on assessments and assump-
tions. This rating is therefore no statement of fact, but an opinion. For this reason, Creditreform 
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ers or sellers. They should only be used by market participants (entrepreneurs, bankers, inves-
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Creditreform Rating AG 
 
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Phone: 
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E-Mail:   info@creditreform-rating.de 
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Chairman of the Board: Michael Bruns 
 
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