**Step 1 – Industry identification**  
REDEIA Corporación SA is a regulated electricity transmission and system‑operator (a regulated utility). The appropriate sector methodology is therefore the **Regulated Utilities** guidelines.

**Step 2 – Adjusted EBITDA (2021 & 2022)**  

| € millions | 2021 (FY 2022‑01‑01) | 2022 (FY 2023‑01‑01) |
|---|---|---|
| Profit‑loss from operating activities | 991 970 | 961 554 |
| + Depreciation & amortisation | 522 114 | 544 992 |
| = EBITDA (reported) | **1 514 084** | **1 506 546** |
| + Provisions (non‑cash) – cash‑flow adjustment | 16 654 | 35 046 |
| – Share of equity‑method earnings (non‑cash) | 29 546 | 50 405 |
| – Government grants (non‑cash) | 14 717 | 15 780 |
| – Net gain on asset disposals/impairments | 1 106 | 708 |
| **Adjusted EBITDA** | **1 485 369** | **1 474 699** |

**Step 3 – Funds‑from‑Operations (FFO)**  

FFO = Adjusted EBITDA – cash interest – cash taxes  

- Cash interest paid (operating activities): 2021 = 121 920 k€; 2022 = 123 524 k€  
- Cash taxes paid (operating activities): 2021 = 181 263 k€; 2022 = 363 996 k€  

| € millions | 2021 | 2022 |
|---|---|---|
| Adjusted EBITDA | 1 485 369 | 1 474 699 |
| – Cash interest | 121 920 | 123 524 |
| – Cash taxes | 181 263 | 363 996 |
| **FFO** | **1 182 186** | **987 179** |

**Step 4 – Adjusted Debt**  

Reported debt = total financial liabilities (non‑current + current).  
Eligible cash = cash & cash equivalents + current financial assets at amortised cost (liquid short‑term assets).

| € millions | 2021 (2022‑01‑01) | 2022 (2023‑01‑01) |
|---|---|---|
| Non‑current financial liabilities | 5 953 434 | 5 543 755 |
| Current financial liabilities | 2 144 425 | 1 705 277 |
| **Reported debt** | **8 097 859** | **7 249 032** |
| Cash & cash equivalents | 1 574 427 | 794 824 |
| + Current fin. assets (amortised cost) | 25 401 | 752 505 |
| **Eligible cash** | **1 599 828** | **1 547 329** |
| **Adjusted Debt** | **6 498 031** | **5 701 703** |

**Step 5 – Leverage ratio (Adjusted Debt / Adjusted EBITDA)**  

| | 2021 | 2022 |
|---|---|---|
| Adjusted Debt | 6 498 031 k€ | 5 701 703 k€ |
| Adjusted EBITDA | 1 485 369 k€ | 1 474 699 k€ |
| **Ratio** | **4.375 ×** | **3.866 ×** |

Change = 3.866 − 4.375 = **‑0.509 ×** → ≤ ‑0.2 × → **Improving**.

**Step 6 – Cash‑flow coverage (FFO / Adjusted Debt)**  

| | 2021 | 2022 |
|---|---|---|
| FFO | 1 182 186 k€ | 987 179 k€ |
| Adjusted Debt | 6 498 031 k€ | 5 701 703 k€ |
| **Ratio** | **0.182** | **0.173** |

Change = 0.173 − 0.182 = **‑0.009** → between ‑0.03 and +0.03 → **Stable**.

**Step 7 – Combine the two signals**  

- Leverage signal → Improving  
- Coverage signal → Stable  

According to the combination rule, when one signal is Stable and the other is Improving, the non‑Stable (Improving) category prevails. The improvement in leverage (‑0.51 ×) is far larger than the modest stable change in coverage, so the overall credit trend is **Improving**.

<answer>Improving</answer>