Weekly Focus: Spain’s Grid stress tests Redeia’s credit strength ahead of 2026 Review (pages 2-4)
Redeia’s Negative Outlook (Moody’s, May 21st) highlights challenges ahead following Spain’s recent ‘apagón’ (national blackout on April 28th) and upcoming new regulatory period (2026-2031) for power TSOs and DSOs.
In this report we compare Spain’s current regulatory framework for its domestic power grid against Italy’s (relevant for Terna) and have modelled potential scenarios for Redeia depending on different upcoming regulatory outcomes (which should come into effect on Jan’26).
BBVA Spreads Analysis:
EUR Corps Spread Retracement: current levels vs pre- & post- Trump’s new 50% tariff threat on EU imports made on May 23rd (pages 5-6)
EUR & USD Corporates: Index Performance (page 7)
EUR Corporates Spread Performance (pages 8-10)
Primary Activity:
EUR & USD Corporates: Primary Issuance Activity (pages 12-13)
1Q25 Corporate Updates and relevant news:
Utilities (pages 14-15): SSE and Hera
O&G (page16): BP
TMT (pages 17-19): Telefónica, AT&T, MasOrange