Moody's Investors Service assigned a provisional rating of ‘Baa3’ to the €1 billion ($1.3 billion)  of bonds issued from Fondo de Titulización del Deficit del Sistema Electrico, a securitization vehicle set up to fund the tariff deficit in the Spanish power industry.

The securitization allows Spanish utility companies to make up shortfalls between the costs incurred to supply power and the regulated tariffs charged to the end users, Moody’s said.

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