Iberdrola appears **Strongly Suitable** for hybrid bond issuance.

Key considerations:

- **Business profile is highly supportive.** Iberdrola is a large, diversified integrated utility with substantial regulated and quasi-regulated electricity network exposure, plus renewables and generation. This fits the type of issuer for which hybrids are commonly accepted by rating agencies and institutional investors: infrastructure-like, essential-service, visible cash flow, and capital-intensive.

- **Large scale and diversified operations.** Total assets were about **€154.7bn** at year-end 2022, with very substantial property, plant and equipment of **€86.3bn**. Revenue increased to **€53.9bn**, EBITDA to **€13.2bn**, and operating profit to **€8.0bn**. This scale, combined with geographic and regulatory diversity, supports strong capital markets access.

- **Investment-grade style credit profile, but with leverage pressure.** Equity was high at **€58.1bn**, but financial liabilities were also significant. Noncurrent financial liabilities rose to **€44.2bn** from **€37.2bn**, while current financial liabilities rose to **€25.1bn** from **€21.3bn**. Total financial liabilities therefore increased materially. Hybrid capital can be useful for preserving credit metrics during a heavy investment cycle.

- **Clear capex and funding rationale.** Iberdrola had major investment outflows: cash used in investing activities was **€10.2bn**, including **€6.3bn** of property, plant and equipment purchases. Operating cash flow of **€10.4bn** broadly covered investing cash outflow before dividends and financing movements, indicating a structurally capital-intensive business with recurring external funding needs. This is a classic rationale for hybrid issuance.

- **Existing hybrid market credibility.** The report indicates prior issuance of perpetual subordinated obligations: **€2.74bn issued in 2021**, with **€169m** of interest accrued/paid in 2022. This shows Iberdrola already uses hybrid-like instruments and has investor familiarity, making future issuance credible and potentially repeatable.

- **Hybrid issuance would likely receive rating equity credit.** For a large investment-grade utility, subordinated perpetual hybrids can materially support adjusted debt metrics under S&P-style treatment, often helping protect rating headroom while avoiding full common equity issuance.

- **Market conditions became less favorable but still accessible.** 2022 rates and credit spreads rose sharply versus 2020-2021, increasing the cost of hybrid issuance. However, Iberdrola’s scale, sector, investment-grade profile, ESG/energy-transition positioning, and established capital markets access should support demand despite higher coupons.

Overall, Iberdrola has the main features of a strong hybrid issuer: large regulated utility profile, substantial ongoing capex, rising debt, established market access, prior hybrid issuance, and a clear rating/headroom rationale.

<answer>Strongly Suitable</answer>