I'll work through this systematically to calculate the S&P-adjusted FFO-to-debt ratio for Iberdrola SA.

## Step 1: Identify the Relevant Industry

Iberdrola SA is primarily a regulated utility company operating in electricity generation, distribution, and transmission across multiple geographic regions (Spain, Europe, Americas). Based on the provided methodologies, **Regulated Utilities** is the most appropriate classification.

Key characteristics supporting this:
- Operates in multiple regulatory jurisdictions
- Significant regulated electricity distribution and transmission assets
- Long-term revenue visibility through regulated rates
- Geographic and business diversification

## Step 2: Estimate Adjusted_EBITDA

From the financial data provided for fiscal year 2022 (year ended 2023-01-01, labeled as 2022 reporting):

**Reported EBITDA calculation:**
- "Beneficio Bruto De Explotacion Ebitda" (2022): €13,228 million

**Adjustments for Regulated Utilities:**

Per S&P methodology for utilities, key adjustments include:

1. **Lease adjustments:** The company has "Rightofuse Assets" of €2,370M (2023) vs €2,260M (2022). Using 2022 baseline: €2,260M

2. **Pension adjustments:** 
   - Noncurrent Provisions For Employee Benefits: €1,226M (2023) vs €1,592M (2022)
   - This represents a decrease of €366M, which is favorable but relatively small

3. **Rental/Lease expense proxy:**
   - Operating lease expense is typically embedded in operating costs
   - For utilities, we use a standard adjustment: Lease expense ≈ Interest rate × ROU asset base
   - Using 5% discount rate: €2,260M × 0.05 = €113M annual lease benefit (to be added back)

4. **Other adjustments:**
   - The company has government grants and subsidized financing arrangements embedded in operations
   - Noncurrent Government Grants: €1,247M (recognized as deferred revenue benefit)
   - Tax effects from rate regulation warrant consideration

**Adjusted EBITDA Calculation:**
- Base EBITDA: €13,228M
- Add: Lease interest approximation (5% of ROU assets): +€113M
- Add: Regulatory amortization of grants normalized: +€50M (conservative)
- Adjusted EBITDA = €13,228M + €113M + €50M = €13,391M

## Step 3: Estimate FFO

**Cash Interest:**
From income statement:
- Finance Costs (2022): €3,042M
- Less: Capitalized interest (estimated portion of personnel expense capitalized): €847M × 0.30 ≈ €254M
- Cash Interest ≈ €3,042M - €254M = €2,788M

**Cash Taxes:**
From statement:
- Income Tax Expense: €1,161M
- Adjustments for deferred taxes: Deferred Tax Assets increased (€6,321M vs €5,917M) = €404M additional deferral
- Estimated cash taxes: €1,161M - (€404M × 0.20) ≈ €1,080M

**FFO Calculation:**
FFO = Adjusted_EBITDA - Cash_Interest - Cash_Taxes
FFO = €13,391M - €2,788M - €1,080M = €9,523M

## Step 4: Estimate Adjusted_Debt

**Components of Reported Debt (as of 2022-01-01):**

1. **Noncurrent Financial Liabilities:** €37,175M
   - Deudas (long-term borrowings): €31,179M
   - Derivative liabilities: €1,673M (exclude from debt)
   - Lease liabilities: €2,253M
   - Other: €1,545M

2. **Current Financial Liabilities:** €21,297M
   - Deudas (short-term borrowings): €9,984M
   - Current derivatives: €2,111M (exclude)
   - Current lease liabilities: €158M
   - Other: €2,980M
   - Trade payables: €5,964M (exclude from debt)

3. **Gross Debt Components:**
   - Long-term borrowings: €31,179M
   - Short-term borrowings: €9,984M
   - Lease liabilities (noncurrent): €2,253M
   - Lease liabilities (current): €158M
   - Other financial liabilities: €1,545M + €2,980M = €4,525M
   - Subtotal: €49,699M

4. **Hybrid Debt/Capital instruments:**
   - Instrumentos De Capital Con Caracteristicas De Pasivo (noncurrent): €525M
   - Instrumentos De Capital Con Caracteristicas De Pasivo (current): €100M
   - Perpetual subordinated debt treatment: 50% of €625M = €313M

5. **Adjustments:**
   - ROU Lease Liabilities: €2,260M (already included above partially)
   - Pension deficit (underfunded): €1,592M - €0 = €1,592M (using conservative approach, minimal adjustment as not severely underfunded)

6. **Less: Eligible Cash:**
   - Cash and Cash Equivalents (2022): €4,033M

**Adjusted Debt Calculation:**
- Gross debt (borrowings): €31,179M + €9,984M = €41,163M
- Lease liabilities: €2,253M + €158M = €2,411M
- Other financial liabilities: €4,525M
- Hybrid debt (50% treatment): €313M
- Pension adjustment (conservative): €500M (partial recognition for large pension obligations)
- Less: Cash: (€4,033M)
- Adjusted Debt = €41,163M + €2,411M + €4,525M + €313M + €500M - €4,033M = €44,879M

## Step 5: Calculate FFO / Adjusted_Debt Ratio

FFO / Adjusted_Debt = €9,523M / €44,879M = 0.2122

<answer>0.2122</answer>