Creditreform Rating has set the initial unsolicited corporate issuer rating of Repsol S.A. at BBB+ with a stable outlook. Repsol is thus assigned a strongly satisfactory credit rating and a low to medium risk of default. Our rating is based on Repsol's strong position in relevant geographic markets, high degree of diversification, and a leading technological position. As a result of the COVID-19 pandemic, which burdened revenues and EBIT, profitability and the net total debt / EBITDA adj. ratio in particular deteriorated in 2020, despite a reduction in (net) debt. Liquidity-supporting measures, including limits on operating and capital expenditures, lower share buybacks and the issuance of hybrid bonds, nevertheless enabled Repsol to weather the crisis well. Against the backdrop of global market recovery and commodity prices, performance in the first three quarters of FY2021 showed a significant improvement in earnings and cash flows, which, combined with the company's financial discipline, support our rating assessment. As a negative ESG factor, the fossil fuel-focused business model impacts the rating.