**Step 1 – Identify industry**  
EDP S.A. is a Portuguese utility engaged in electricity generation, transmission, distribution and gas supply. It operates under a regulated framework, so the “Regulated Utilities” methodology applies.

**Step 2 – 2021 Adjusted EBITDA**  
EBITDA (as reported) = EBIT + Depreciation & Amortisation.  
EBIT = “Profit loss before financial income and financial expenses …” = 1 930 785 k € (2021).  
Depreciation & Amortisation = 1 731 755 k € (2021).  
→ Reported EBITDA = 1 930 785 + 1 731 755 = 3 662 540 k €.

Adjustments (non‑recurring items):  
‑ Impairment loss = + 32 828 k €  
‑ Provisions = + 60 510 k €  
‑ Loss on disposal = 0 (2021)  

→ Adjusted EBITDA 2021 = 3 662 540 + 32 828 + 60 510 = 3 755 878 k €.

**Step 3 – 2021 FFO**  
Cash interest (interest paid on financial debt, loans from non‑controlling interests and related parties) = 481 329 + 18 244 = 499 573 k € (2021).  
Cash taxes (income‑tax + CESE paid) = 89 845 k €.  

FFO = Adjusted EBITDA – Cash Interest – Cash Taxes  
= 3 755 878 – 499 573 – 89 845 = 3 166 460 k €.

**Step 4 – 2021 Adjusted Debt**  
Reported debt (short‑term + long‑term borrowings) = 1 518 348 + 15 299 588 = 16 817 936 k €.  
Leases (right‑of‑use assets) = 1 007 029 k €.  
Pension deficit (provisions for employee benefits) = 940 266 + 179 534 = 1 119 800 k €.  
Deferred‑tax liabilities = 989 078 k €.  
Other non‑current financial liabilities = 3 039 975 k €.  
Other current financial liabilities = 2 781 101 k €.  
Total debt‑like items = 16 817 936 + 1 007 029 + 1 119 800 + 989 078 + 3 039 975 + 2 781 101 = 25 754 919 k €.  
Cash & cash equivalents = 3 222 409 k €.  

Adjusted Debt 2021 = 25 754 919 – 3 222 409 = 22 532 510 k €.

**Step 5 – 2021 Leverage**  
Leverage = Adjusted Debt / Adjusted EBITDA = 22 532 510 / 3 755 878 ≈ 6.00 x.

**Step 6 – 2021 Cash‑flow coverage**  
Coverage = FFO / Adjusted Debt = 3 166 460 / 22 532 510 ≈ 0.1405 (14.05 %).

**Step 7 – 2022 Adjusted EBITDA**  
EBIT = 2 529 993 k € (2022).  
Depreciation & Amortisation = 1 979 007 k € (2022).  
Reported EBITDA = 2 529 993 + 1 979 007 = 4 509 000 k €.

Adjustments:  
‑ Impairment loss = + 60 199 k €  
‑ Provisions = + 14 539 k €  
‑ Loss on disposal = + 4 377 k €  

→ Adjusted EBITDA 2022 = 4 509 000 + 60 199 + 14 539 + 4 377 = 4 588 115 k €.

**Step 8 – 2022 FFO**  
Cash interest = 716 454 + 12 885 + 111 = 729 450 k € (2022).  
Cash taxes = 258 849 k €.  

FFO = 4 588 115 – 729 450 – 258 849 = 3 599 816 k €.

**Step 9 – 2022 Adjusted Debt**  
Reported debt = 4 239 869 + 15 782 604 = 20 022 473 k €.  
Leases = 1 320 270 k €.  
Pension = 644 299 + 126 767 = 771 066 k €.  
Deferred‑tax liabilities = 1 244 593 k €.  
Other non‑current financial liabilities = 5 159 496 k €.  
Other current financial liabilities = 3 600 893 k €.  
Total debt‑like items = 20 022 473 + 1 320 270 + 771 066 + 1 244 593 + 5 159 496 + 3 600 893 = 32 118 791 k €.  
Cash & cash equivalents = 4 900 205 k €.  

Adjusted Debt 2022 = 32 118 791 – 4 900 205 = 27 218 586 k €.

**Step 10 – 2022 Leverage**  
Leverage = 27 218 586 / 4 588 115 ≈ 5.94 x.

**Step 11 – 2022 Cash‑flow coverage**  
Coverage = 3 599 816 / 27 218 586 ≈ 0.1323 (13.23 %).

**Step 12 – Credit‑trend signals**  

| Signal | 2021 | 2022 | Change | Assessment |
|--------|------|------|--------|------------|
| Leverage (Debt/EBITDA) | 6.00 x | 5.94 x | –0.06 x | Stable (within ±0.2 x) |
| Cash‑flow coverage (FFO/Debt) | 0.1405 | 0.1323 | –0.0082 (‑0.82 pp) | Stable (within ±0.03) |

Both signals are “Stable”, therefore the overall credit trend is **Stable**.

<answer>Stable</answer>