Creditreform Rating has set the initial unsolicited corporate issuer rating of Red Eléctrica Corporación, S.A., hereinafter also referred to as REC, at A- with a stable outlook. This unsolicited corporate issuer rating attests Red Eléctrica Corporación, S.A. a high level of creditworthiness, representing a low default risk. Our rating is based on REC's strategic importance for Spain, with a strong market position, and its company profile of essentially low economic and financial risks, benefiting from an established regulatory framework in Spain. Despite striving for diversification of the business model, as well as expansion abroad, the majority of its revenues are based on domestic regulated activities (managing and operating the high voltage transmission grid in Spain), which provide reliable and predictable cash flows. REC showed a positive performance over the last years with solid financial key figures also in 2020, despite COVID-19 impact and effects through a new regulation for electricity transmission. In addition, REC disposes of a comfortable liquidity position and a proven access to financial markets. Due to similar general framework conditions in this year as in 2020, we assume that the general situation will not deteriorate further. Nevertheless, we point out the currently high level of pandemic-related uncertainty, which could lead to a rating adjustment.