The review was prompted by very weak operating results in H1 2014 predominantly driven by regulatory changes in the Spanish energy markets. During the review, the agency will evaluate additional details of the company's business recovery plan which is going to be implemented to offset the changes in the Spanish energy markets.

During H1 2014, ENCE's electricity sales reduced by 44% compared to the prior year due to regulatory changes in the Spanish energy market, exacerbated by a 15% decline in pulp sales due to lower volumes and pricing as a result of global demand-supply imbalances in anticipation of sizeable new pulp capacities coming on stream between 2014 and 2015.

At this stage, Moody's expects that a possible downgrade, if any, would be limited to one notch of the long term rating.