TEXT-Moody's release on Enel S.p.A.

(The following statement was released by the rating agency)

May 22 - Moody's Investors Service has confirmed the A2 long-term senior unsecured ratings of Enel S.p.A. and its guaranteed subsidiaries Enel Finance International S.A. and Enel Investment Holding B.V. and the Prime-1 short-term rating of Enel Finance International S.A. The outlook on all ratings is negative.

This concludes the review for possible downgrade initiated in January 2008. "The rating confirmations reflect Moody's assessment of Enel's recently announced strategic plan following the completion of its 67.05% debt-financed acquisition of Endesa in 2007.

Despite the ambitious nature of the plan targeting EUR37 billion of investments, we believe that the company is committed to deleverage through a combination of means, including asset disposals and increased cash flow generation," said Helen Francis, a Moody's Vice President-Senior Credit Officer and lead analyst for Enel. Moody's considers Enel a Government-Related Issuer ("GRI").

As such, the current A2/Prime-1 ratings incorporate a one-notch uplift from Enel's Baseline Credit Assessment ("BCA") of 7 (equivalent to an A3 rating), to reflect the likelihood of state support from the Aa2-rated Government of Italy.

However, as part of Moody's review of Enel's ratings, both the support and the dependence factors have weakened moderately within the 'medium' category to reflect the high levels of debt-funded investments outside of Italy.

Moody's understands that Enel's reliance on domestic EBITDA will decline from around 75% at the end of 2007 to slightly more than 40% by 2012, given, in particular, the strong focus on growth via Endesa in the Iberian and Latin American markets.

As the support and dependence factors have weakened, in the event that the BCA dropped to 8 (equivalent to Baa1), the final rating would also shift downwards one notch to A3.

The ratings recognise that the company will have a riskier business risk profile in the future given Enel's greater exposure to Latin America, South Eastern Europe and Russia, could increase to over 30% of EBITDA by 2012. However, this will be partially offset by the increased scale and diversification of the group and its strong market positions in both Italy, via Enel, and Spain, via Endesa.