To estimate the S&P-adjusted debt-to-EBITDA ratio for IBERDROLA SA for the fiscal year ended December 31, 2022, we follow the workflow outlined.

### Step 1: Identify the Relevant Industry

IBERDROLA SA is a major international electric utility company. Its operations include electricity generation (renewables, nuclear, hydro, combined cycle), transmission, distribution, and retail supply.
Based on the provided methodologies:
*   **Regulated Utilities:** This sector covers companies providing essential infrastructure services shielded from competition and subject to comprehensive regulation. Iberdrola has significant regulated networks (distribution and transmission) in Spain, the UK (ScottishPower), the US (Avangrid), and Brazil.
*   **Unregulated Power And Gas:** This covers merchant generation and retail supply. Iberdrola also has significant unregulated generation and retail activities.

S&P typically assesses integrated utilities like Iberdrola under the **Regulated Utilities** methodology if the regulated portion is dominant or if the regulatory framework is strong enough to define the credit profile. Even if considered a mix, the "Regulated Utilities" methodology provides the specific accounting adjustments for leases and pensions often applied to utilities. The prompt provides specific details for "Regulated Utilities" including adjustments for leases and pensions. Given Iberdrola's status as a large, diversified utility with substantial regulated asset bases, we will apply the **Regulated Utilities** framework. Note that for diversified utilities, S&P often looks at the consolidated numbers but applies adjustments consistent with utility accounting (e.g., treating operating leases as debt).

### Step 2: Estimate Adjusted Debt

The baseline formula is:
`Adjusted_Debt = (reported_debt + leases + pension_deficit + guarantees + hybrid_debt_portion + other_debt_like_items) - eligible_cash`

**1. Reported Debt:**
We need to identify interest-bearing financial liabilities. From the balance sheet data (2023-01-01 represents the end of 2022):
*   Noncurrent Financial Liabilities: 44,216,000,000 EUR
    *   Includes: Debts with credit entities/bonds (36,129,000,000), Equity instruments with financial liability characteristics (576,000,000), Derivatives (3,690,000,000), Lease Liabilities (2,287,000,000), Other (1,534,000,000).
*   Current Financial Liabilities: 25,079,000,000 EUR
    *   Includes: Debts with credit entities/bonds (10,458,000,000), Equity instruments with financial liability characteristics (87,000,000), Derivatives (3,398,000,000), Lease Liabilities (151,000,000), Other (5,058,000,000 - likely short-term debt/CP).

Total Reported Financial Debt (excluding derivatives for a moment to classify correctly):
Standard S&P practice includes gross debt. Let's sum the principal debt components.
*   Noncurrent Debt (excluding derivatives and leases for separate handling if needed, but usually "Financial Liabilities" includes them):
    *   Debts with credit entities: 36,129 + 10,458 = 46,587 million.
    *   Other Financial Liabilities (Non-current): 1,534 million.
    *   Other Financial Liabilities (Current): 5,058 million.
    *   Equity instruments with liability characteristics (Hybrids): 576 + 87 = 663 million.
    *   Lease Liabilities: 2,287 + 151 = 2,438 million.
    *   Derivative Financial Liabilities: 3,690 + 3,398 = 7,088 million.

S&P Adjusted Debt typically includes:
*   Gross Debt (Short-term + Long-term interest bearing debt).
*   Capitalized Operating Leases (present value of lease liabilities).
*   Pension Deficit (if underfunded).
*   Hybrid Securities (often 50% equity credit, meaning 50% treated as debt, or fully as debt depending on terms; S&P often gives 50% equity credit to perpetual hybrids with strong deferral features. However, without specific terms, we might treat the reported "Equity instruments with financial liability characteristics" as debt or apply a standard haircut. Let's look at the "Noncurrent Financial Liabilities" breakdown. The item "Instrumentos De Capital Con Caracteristicas De Pasivo Financiero" is classified as a liability, so it is already in debt. S&P might reclassify some hybrids to equity. However, a conservative baseline starts with reported financial liabilities.
*   Less: Cash and Cash Equivalents (and sometimes short-term investments).

Let's calculate Gross Debt from the provided lines:
*   Noncurrent Financial Liabilities: 44,216 million
*   Current Financial Liabilities: 25,079 million
*   Total Financial Liabilities = 69,295 million.

This figure includes derivatives. S&P often excludes derivatives from debt for leverage ratios unless they are in a net liability position that is effectively funded debt. However, a simpler proxy for "Reported Debt" in these datasets is often `Noncurrent Financial Liabilities + Current Financial Liabilities`.
Let's refine the debt definition to interest-bearing debt excluding derivatives if possible, or include them if they are significant.
Derivatives: 7,088 million.
Leases: 2,438 million.
Hybrids (Liability classified): 663 million.
Core Debt (Bonds/Loans): 46,587 million.
Other Financial Liabilities: 1,534 + 5,058 = 6,592 million.

Total Financial Liabilities = 69,295 million.

**Adjustments for Debt:**
*   **Leases:** The reported financial liabilities *already include* lease liabilities (2,287 + 151 = 2,438 million). So we do not add them again. We just ensure they are included. They are.
*   **Pension Deficit:** We need to check the funded status.
    *   Noncurrent Provisions for Employee Benefits: 1,226 million.
    *   Current Provisions for Employee Benefits: 42 million.
    *   Total Pension Provisions: 1,268 million.
    *   S&P adds the underfunded amount of defined benefit pension plans to debt. The provision represents the net liability on the balance sheet. So, we add the net pension liability if it's not already in debt. It is in "Provisions", not "Financial Liabilities". So we **add** 1,268 million to debt.
*   **Hybrids:** The 663 million is classified as a financial liability. S&P typically gives 50% equity credit to qualifying hybrids. If we assume these are standard perpetual subordinated bonds (common in utilities), we might treat 50% as debt and 50% as equity. However, since they are already in the liability section, treating them as 100% debt is the starting point. If we apply a 50% equity credit, we would subtract 50% of 663 = 331.5 million from debt. Let's stick to the conservative reported liability first, or check if "Adjusted Debt" implies removing the equity portion. Standard S&P adjustment: Debt = Reported Debt + Leases + Pension Deficit - Cash. Hybrids are often adjusted. Let's assume a 50% equity credit for the hybrid portion classified as liabilities.
    *   Hybrid adjustment: Subtract 50% of 663 = 331.5 million.
*   **Eligible Cash:**
    *   Cash And Cash Equivalents: 4,608 million.
    *   Current Financial Assets: 4,813 million. (S&P often deducts unrestricted cash and short-term investments).
    *   Let's deduct Cash and Cash Equivalents: 4,608 million.
    *   Sometimes short-term investments (Current Financial Assets) are also deducted if they are liquid. Let's deduct Cash only to be conservative, or Cash + Short Term Investments. S&P usually deducts "Cash and short-term investments".
    *   Current Financial Assets: 4,813 million.
    *   Total Liquid Assets to deduct: 4,608 + 4,813 = 9,421 million.
    *   *Correction*: Often, "Current Financial Assets" includes derivatives and other items. "Cash And Cash Equivalents" is the safest deduction. Let's look at the composition. "Other Current Financial Assets" is 2,964. "Current Derivative Financial Assets" is 1,849. "Cartera De Valores No Corrientes" is non-current.
    *   Standard S&P deduction is Cash and Cash Equivalents. Sometimes unrestricted short-term investments. Let's deduct Cash and Cash Equivalents (4,608) and potentially the liquid part of Current Financial Assets. To be precise, S&P deducts "Cash and cash equivalents" and "Short-term investments". Let's assume Current Financial Assets are largely liquid investments.
    *   Let's deduct Total Cash & Equivalents: 4,608 million.
    *   Let's also check if there is restricted cash. Not specified.
    *   Let's deduct 4,608 million.

**Re-evaluating Debt Components:**
1.  **Gross Debt (Financial Liabilities):** 69,295 million.
    *   This includes Leases (2,438).
    *   This includes Hybrids (663).
    *   This includes Derivatives (7,088).
2.  **Pension Deficit:** Add Net Pension Liability.
    *   Provisions for Employee Benefits (Noncurrent + Current): 1,226 + 42 = 1,268 million.
3.  **Hybrid Adjustment:**
    *   If we treat the 663 million hybrid liability as 50% debt, we subtract 331.5 million.
4.  **Derivative Adjustment:**
    *   S&P often excludes derivatives from debt unless they are synthetic debt. Given the volatility, let's exclude the net derivative liability? Or keep it? In utility ratings, derivatives are often part of the financial risk but might be excluded from the core "Debt" numerator for leverage if they are hedging instruments. However, without netting assets, keeping them is conservative. Let's look at Net Derivatives.
    *   Derivative Liabilities: 7,088 million.
    *   Derivative Assets: 3,661 (Noncurrent) + 1,849 (Current) = 5,510 million.
    *   Net Derivative Liability: 7,088 - 5,510 = 1,578 million.
    *   It is more appropriate to use Net Derivatives or exclude them. S&P typically adjusts debt to include the *net* mark-to-market of derivatives if they are significant, or excludes them if they are operational hedges. Let's assume we adjust the reported financial liabilities to exclude the gross derivatives and include the net, or simply exclude them from the debt definition if they are not funding debt.
    *   A common simplification for "Reported Debt" in these exercises is `Interest Bearing Debt`.
    *   Interest Bearing Debt = Total Financial Liabilities - Derivatives - Leases (if added separately) - Hybrids (if adjusted).
    *   Let's try a standard construction:
        *   Bonds/Loans (Noncurrent): 36,129
        *   Bonds/Loans (Current): 10,458
        *   Other Financial Liabilities (Noncurrent): 1,534
        *   Other Financial Liabilities (Current): 5,058
        *   Total Core Debt = 53,179 million.
        *   Add Leases: 2,438 million.
        *   Add Pension Deficit: 1,268 million.
        *   Add Hybrids (50%): 331.5 million.
        *   Add Net Derivatives (Liability): 1,578 million. (Or exclude? Let's include net).
        *   Total Adjusted Debt (Gross) = 53,179 + 2,438 + 1,268 + 331.5 + 1,578 = 58,794.5 million.
        *   Less Cash: 4,608 million.
        *   Adjusted Debt = 54,186.5 million.

    *Alternative (Simpler) Approach:*
    Many analysts just take `Total Financial Liabilities` + `Pension Provisions` - `Cash`.
    Total Fin Liab: 69,295.
    Pension Prov: 1,268.
    Cash: 4,608.
    Adj Debt = 69,295 + 1,268 - 4,608 = 65,955.
    This includes gross derivatives and full hybrids. This is likely too high.

    Let's look at S&P specific utility adjustments.
    S&P adds operating leases (already in IFRS 16 liabilities).
    S&P adds underfunded pensions.
    S&P deducts cash.
    S&P often gives 50% equity credit to hybrids.
    S&P often excludes derivatives from debt for leverage calculation, focusing on funded debt.

    Let's calculate **Funded Debt**:
    Noncurrent Debt with credit entities: 36,129
    Current Debt with credit entities: 10,458
    Other Noncurrent Fin Liab: 1,534
    Other Current Fin Liab: 5,058
    Total Funded Debt = 53,179.

    Add:
    Leases (IFRS 16): 2,438.
    Pension Deficit: 1,268.
    Hybrids (50% of 663): 332.
    
    Total Gross Adjusted Debt = 53,179 + 2,438 + 1,268 + 332 = 57,217 million.

    Less:
    Cash and Cash Equivalents: 4,608.
    (Sometimes short term investments are deducted. Current Financial Assets 4,813 includes derivatives 1,849 and other 2,964. If we deduct only cash, we are conservative. If we deduct Cash + Short Term Investments (excluding derivatives), we deduct ~4,608 + 2,964 = 7,572. Let's stick to Cash only as "Eligible Cash" is strictly defined often as Cash & Equivalents).
    
    Adjusted Debt = 57,217 - 4,608 = **52,609 million EUR**.

### Step 3: Estimate Adjusted EBITDA

The baseline formula is:
`Adjusted_EBITDA = EBITDA + adjustment_leases + nonrecurring_losses - nonrecurring_gains ± other_adjustments`

**1. Reported EBITDA:**
The report provides "Beneficio Bruto De Explotacion Ebitda" for 2022-01-01 - 2023-01-01: **13,228 million EUR**.

**2. Adjustments:**
*   **Lease Adjustment:** Under IFRS 16, EBITDA is generally higher than under old operating lease accounting because lease expenses are split into depreciation and interest. S&P often adds back the interest portion of lease liabilities to EBITDA? No, S&P defines EBITDA as earnings before interest, tax, depreciation, and amortization.
    *   Reported EBITDA (13,228) is likely after deducting operating expenses but before interest, tax, depreciation.
    *   With IFRS 16, the "interest" on leases is below EBITDA (in Finance Costs). The "depreciation" of right-of-use assets is below EBITDA (in Depreciation).
    *   Therefore, Reported EBITDA under IFRS 16 is effectively "EBITDAR" (Earnings Before Interest, Tax, Depreciation, Amortization, and Rent). It already includes the add-back of the principal/rent portion.
    *   S&P typically does *not* adjust EBITDA for leases if IFRS 16 is used, because the interest is excluded from EBITDA anyway. Wait.
    *   Standard EBITDA = Operating Profit + Depreciation + Amortization.
    *   Operating Profit (Profit Loss From Operating Activities) = 7,984 million.
    *   Depreciation/Amortization = 4,774 million.
    *   Calculated EBITDA = 7,984 + 4,774 = 12,758 million.
    *   The reported "Beneficio Bruto De Explotacion Ebitda" is 13,228 million. The difference (470 million) might be due to other items like impairment reversals, provisions, or share of associates.
    *   Let's use the reported EBITDA: **13,228 million**.

*   **Non-recurring items:**
    *   "Other Gains Losses": 911 million (Gain). This is likely included in Operating Profit or EBITDA. If it's non-recurring, we should subtract it.
    *   "Correccion Valorativa De Deudores...": -470 million (Loss/Expense). This is likely an operating expense (impairment of receivables). If non-recurring, add back.
    *   S&P adjustments often normalize for significant one-time gains/losses.
    *   Without specific "non-recurring" labels, we might assume the reported EBITDA is the baseline. However, "Other Gains Losses" of 911m is significant. If this is a gain, we subtract it.
    *   Let's check the composition of EBITDA.
    *   Revenue: 53,949.
    *   Raw Materials: -33,750.
    *   Employee Benefits: -3,365.
    *   Services: -3,602.
    *   Gross Profit: 20,199.
    *   Other Work Capitalized: 847.
    *   Other Gains/Losses: 911.
    *   Net Operating Expense (Gasto Operativo Neto): -5,209. (This likely includes Depreciation? No, EBITDA is Gross Profit + Other Income - Operating Expenses excluding D&A? Or is Gasto Operativo Neto EBITDA?)
    *   Let's trace:
        *   Gross Profit: 20,199.
        *   Plus Other Work Capitalized: 847.
        *   Plus Other Gains/Losses: 911.
        *   Less "Gasto Operativo Neto": 5,209.
        *   20,199 + 847 + 911 - 5,209 = 16,748. This doesn't match 13,228.
    *   Let's look at "Profit Loss From Operating Activities": 7,984.
    *   Add Depreciation: 4,774.
    *   7,984 + 4,774 = 12,758.
    *   The reported EBITDA is 13,228. Difference is 470.
    *   Maybe "Correccion Valorativa..." (-470) is added back? 12,758 + 470 = 13,228. Yes.
    *   So Reported EBITDA (13,228) = Operating Profit (7,984) + Depreciation (4,774) + Impairment of Receivables (470).
    *   S&P usually considers impairment of receivables as an operating cost, but if it's volatile, might adjust. However, the biggest item is "Other Gains Losses" (911). Is this included in Operating Profit? Yes, typically.
    *   If "Other Gains Losses" (911) is a non-recurring gain, we should subtract it from EBITDA.
    *   Adjusted EBITDA = 13,228 - 911 = 12,317 million.
    *   Are there other adjustments?
    *   Share of associates: "Adjustments For Undistributed Profits Of Investments Accounted For Using Equity Method": -146 million. This is a cash flow adjustment.
    *   S&P often adds back the proportionate EBITDA of equity method investees if they are material, or just uses the dividend received. Here, the share of profit is likely in Operating Profit.
    *   Let's assume the main adjustment is removing non-recurring gains.
    *   Also, S&P adds back "Non-recurring losses". The -470 impairment was added back to get to 13,228. If we consider it recurring, we leave it. If we consider it non-recurring, it's already added.
    *   Let's stick to the reported EBITDA of 13,228 and subtract the significant "Other Gains" of 911, assuming they are non-operating or non-recurring.
    *   Adjusted EBITDA = 13,228 - 911 = **12,317 million EUR**.

    *Refinement on Leases in EBITDA:*
    Since IFRS 16 is used, the lease interest is in Finance Costs (below EBITDA). The lease principal repayment is in Financing Cash Flow. The depreciation of ROU assets is in Depreciation (added back to get EBITDA). So Reported EBITDA is effectively EBITDAR. S&P does not add back lease interest to EBITDA (it's interest). So no lease adjustment to EBITDA is needed.

    *Refinement on Pensions:*
    S&P adds back the service cost and interest cost? No, EBITDA is before interest. The pension expense in Operating Profit includes service cost and net interest? Usually, net interest on pension deficit is in Finance Costs. Service cost is in Operating Profit. So EBITDA includes the service cost deduction. S&P might adjust for significant non-cash pension costs, but 1,268m provision is the balance sheet item. The expense is likely embedded. We will leave EBITDA as is, adjusted for non-recurring gains.

    Let's check if "Other Gains Losses" (911) is truly non-recurring. In utilities, this can be gains on asset disposals. 911m is large. It's safer to normalize it out.
    
    Adjusted EBITDA = 12,317 million.

### Step 4: Calculate Ratio

Adjusted Debt = 52,609 million.
Adjusted EBITDA = 12,317 million.

Ratio = 52,609 / 12,317 = 4.271...

Let's double check the Debt calculation.
If we don't deduct cash:
Debt = 57,217.
Ratio = 57,217 / 12,317 = 4.64.

If we don't adjust hybrids (treat 100% as debt):
Debt = 52,609 + 332 = 52,941.
Ratio = 52,941 / 12,317 = 4.30.

If we don't subtract the gain from EBITDA:
EBITDA = 13,228.
Debt = 52,609.
Ratio = 52,609 / 13,228 = 3.98.

S&P methodology for Regulated Utilities often uses "FFO to Debt" and "Debt to EBITDA".
Standard S&P adjustment for Debt:
Gross Debt (including leases) + Pension Deficit - Cash.
Gross Debt (Financial Liabilities) = 69,295.
Less Derivatives (Net)? If we keep Gross Derivatives in Debt, Debt is higher.
If we use Total Financial Liabilities (69,295) + Pension (1,268) - Cash (4,608) = 65,955.
Ratio = 65,955 / 13,228 = 4.98.

However, S&P explicitly excludes derivatives from debt in many contexts unless they are synthetic debt. And gives equity credit to hybrids.
Let's look at Iberdrola's actual reported leverage. Iberdrola typically targets Net Debt to EBITDA around 4.0x - 4.5x.
Net Debt reported by Iberdrola in 2022:
Total Liabilities (Financial) ~ 69bn.
Cash ~ 4.6bn.
Net Debt ~ 64.4bn.
EBITDA ~ 13.2bn.
Ratio ~ 4.8x.

But S&P *Adjusted* Debt usually differs.
S&P adds pensions (~1.3bn).
S&P might adjust hybrids.
S&P might exclude derivatives.

Let's try a middle ground often used in these estimates:
Debt = Interest Bearing Debt (Bonds + Loans) + Leases + Pension Deficit - Cash.
Interest Bearing Debt (from "Deudas Con Entidades..."): 36,129 + 10,458 = 46,587.
Other Financial Liabilities (likely short term debt/CP): 1,534 + 5,058 = 6,592.
Total Core Debt = 53,179.
Leases = 2,438.
Pension = 1,268.
Hybrids (50%) = 332.
Gross Adj Debt = 57,217.
Cash = 4,608.
Net Adj Debt = 52,609.

EBITDA = 13,228 (Reported).
If we do not adjust for the 911 gain (assuming it's part of core operations or recurring for a utility with asset rotations):
Ratio = 52,609 / 13,228 = 3.98.

If we adjust EBITDA down by 911:
Ratio = 52,609 / 12,317 = 4.27.

Given the volatility of "Other Gains", normalizing is prudent. However, 3.98 is very close to 4.00.
Let's check if "Other Gains" is included in EBITDA. Yes, it's above Operating Profit.
Is it non-recurring? Asset disposals are common in utilities.
Let's assume the standard reported EBITDA is the denominator for S&P unless specified "Adjusted". The prompt asks for "S&P-adjusted". S&P adjusts for non-recurring items. 911m is ~7% of EBITDA. It's material.

Let's consider the "Debt" side again.
Did we miss "Noncurrent Government Grants"? No, that's a liability but not debt.
Did we miss "Trade Payables"? No, not debt.

Let's refine the Cash deduction.
S&P deducts "Cash and cash equivalents" and "Short-term investments".
Current Financial Assets: 4,813.
If we deduct this too:
Cash + ST Inv = 4,608 + 4,813 = 9,421.
Net Debt = 57,217 - 9,421 = 47,796.
Ratio = 47,796 / 12,317 = 3.88.

Iberdrola's S&P rating is BBB+. Typical leverage for BBB+ utilities is 4.0x - 4.5x.
3.88 - 4.27 seems the right range.

Let's use the most standard S&P definitions:
**Adjusted Debt** = Gross Debt (including leases, excluding derivatives) + Pension Deficit + 50% Hybrids - Cash.
Gross Debt (Core) = 53,179.
Leases = 2,438.
Pension = 1,268.
Hybrids (50%) = 332.
Total Gross = 57,217.
Cash = 4,608.
Net = 52,609.

**Adjusted EBITDA** = Reported EBITDA - Non-recurring Gains.
Reported = 13,228.
Non-recurring Gain = 911.
Adj EBITDA = 12,317.

Ratio = 52,609 / 12,317 = 4.2712...

Rounding to two decimal places: 4.27.

<answer>4.27</answer>