To estimate the S&P-adjusted FFO-to-debt ratio for IBERDROLA SA for the fiscal year ended December 31, 2022, we follow the workflow based on the provided annual report facts and S&P methodology.

### Step 1: Identify the Relevant Industry

Iberdrola is a global energy company with significant operations in regulated electricity networks (distribution and transmission) in Spain, the UK, US, and Brazil, as well as unregulated renewable generation and retail supply.
*   **Regulated Utilities:** The methodology states that for integrated electric utilities, if they derive about two-thirds or more of operating cash flows from regulated operations with a "strong" regulatory advantage, the low volatility table applies. If they derive 50% or more from regulated activities with "adequate" advantage, the medial volatility table applies.
*   **Unregulated Power and Gas:** Applies to the generation and retail segments.

Iberdrola is typically assessed as a **Regulated Utility** with a significant unregulated component. However, for the calculation of standard credit ratios like FFO/Debt, S&P generally uses the consolidated figures adjusted for specific items. The prompt asks to estimate the ratio using the provided facts. We will calculate the components based on the consolidated financial statements provided, applying standard S&P adjustments for utilities (e.g., treating leases as debt, adjusting EBITDA for lease interest/add-backs if necessary, though the baseline formula provided is `Adjusted_EBITDA = EBITDA + adjustment_leases...`).

Given the mix, we will treat it under the **Regulated Utilities** framework for adjustments, but the core calculation of FFO and Debt relies on the consolidated numbers provided. The "Regulated Utilities" section notes: "We do not adjust GAAP earnings or balance-sheet figures to remove the effects of regulatory accounting." It also mentions adjusting for purchased power contracts (debt-like) and seasonal working capital. Without specific details on purchased power contract liabilities or seasonal inventory netting confidence, we will stick to the reported balance sheet items for Debt and the Income Statement/Cash Flow items for FFO, applying the standard lease adjustments which are explicit in the data.

### Step 2: Estimate Adjusted EBITDA

The reported EBITDA is provided in the facts:
*   `Beneficio Bruto De Explotacion Ebitda` (2022): **13,228,000,000 EUR**

S&P adjustments for EBITDA often include adding back lease interest (if EBITDA is defined as pre-lease interest) or normalizing non-recurring items. The baseline formula is:
`Adjusted_EBITDA = EBITDA + adjustment_leases + nonrecurring_losses - nonrecurring_gains ...`

In many utility contexts, reported EBITDA already includes the operating lease expense (rent). S&P often adds back the implied interest portion of lease payments to EBITDA to make it comparable to owned assets, or simply uses Reported EBITDA if the lease impact is small or already normalized. However, a common S&P adjustment for FFO calculation involves starting with EBITDA. Let's look for non-recurring items.
*   `Other Gains Losses`: 911,000,000 EUR. This is likely included in the EBITDA or Operating Profit. Usually, "Other Gains/Losses" are considered non-operating or non-recurring. If this is a gain, we subtract it. If it's a loss, we add it. The sign is positive in the list, but the label is "Other Gains Losses". Looking at `Profit Loss From Operating Activities` (7,984) vs `EBITDA` (13,228) and `Depreciation` (4,774). $13,228 - 4,774 = 8,454$. The operating profit is 7,984. The difference is roughly 470 (Impairment/Provisions) + other items.
*   Typically, for a large utility like Iberdrola, reported EBITDA is a strong starting point. Without specific "non-recurring" tags in the text, we will assume the reported EBITDA is the base.
*   **Lease Adjustment:** S&P often adds back the interest component of lease payments to EBITDA. However, a simpler approach often used when detailed lease P&L splits aren't provided is to use Reported EBITDA. Let's check if there are specific "adjustment_leases". The prompt formula says `+ adjustment_leases`. In S&P methodology for utilities, lease adjustments to EBITDA are often minimal or zero if the EBITDA is already "rent-inclusive" and we are moving to FFO. A more critical adjustment is in Debt.
*   Let's assume **Adjusted EBITDA = Reported EBITDA** for now, as no specific non-recurring items are clearly identified as excluded from the reported EBITDA figure in the text provided.
    *   **Adjusted EBITDA = 13,228,000,000 EUR**

### Step 3: Estimate FFO

Formula: `FFO = Adjusted_EBITDA - cash_interest - cash_taxes`

1.  **Cash Interest:**
    *   Reported `Finance Costs`: 3,042,000,000 EUR.
    *   We need *cash* interest paid.
    *   From Cash Flow Statement:
        *   `Intereses Pagados Excluidos Intereses Capitalizados De Deudas Con Entidades De Credito YObligaciones UOtros Valores Negociables`: 1,495,000,000 EUR.
        *   `Intereses Pagados Excluidos Intereses Capitalizados De Pasivos Financieros Por Arrendamiento`: 61,000,000 EUR.
        *   `Intereses Pagados De Obligaciones Perpetuas Subordinadas`: 169,000,000 EUR.
        *   `Interest Paid Classified As Investing Activities`: 189,000,000 EUR. (Note: S&P typically classifies interest paid as operating or financing. If classified as investing, it might be added back to Operating Cash Flow, but for FFO calculation `EBITDA - Cash Interest`, we need total cash interest expense).
        *   Total Cash Interest Paid = $1,495 + 61 + 169 + 189 = 1,914$ million EUR?
        *   Wait, let's look at `Finance Costs` (Accrual) vs Cash.
        *   Finance Costs: 3,042.
        *   Cash Interest components listed in Financing/Investing:
            *   Debt Interest: 1,495
            *   Lease Interest: 61
            *   Perpetuals Interest: 169
            *   Investing Interest: 189
            *   Total explicit cash interest outflows = $1,495 + 61 + 169 + 189 = 1,914$ million.
        *   However, there might be capitalized interest. `Purchase Of Property Plant And Equipment` is 6,277. Capitalized interest is often included in investing cash flows or netted.
        *   Let's check the difference between Finance Costs (3,042) and Cash Interest (~1,914). The difference is large (~1,100). This could be due to amortization of discounts/premiums, fair value changes in derivatives (included in finance costs but non-cash), or capitalized interest.
        *   S&P FFO definition: `FFO = Net Income + Depreciation + Deferred Taxes + Other Non-Cash Items`. Or `EBITDA - Cash Interest - Cash Taxes`.
        *   Using the `EBITDA - Cash Interest - Cash Taxes` approach requires accurate Cash Interest.
        *   Let's sum the explicit interest payments provided:
            *   Interest on Debt: 1,495
            *   Interest on Leases: 61
            *   Interest on Perpetuals: 169
            *   Interest Paid (Investing): 189
            *   Total = **1,914,000,000 EUR**.

2.  **Cash Taxes:**
    *   From Cash Flow Statement: `Income Taxes Paid Classified As Operating Activities`: **1,055,000,000 EUR**.
    *   Note: There is also `Tax Expense Other Than Income Tax Expense` (1,762) and `Income Tax Expense` (1,161). The cash paid is the relevant figure for the FFO formula provided.

3.  **Calculate FFO:**
    *   $FFO = 13,228 - 1,914 - 1,055$
    *   $FFO = 10,259,000,000$ EUR.

    *Alternative Check using Net Income approach:*
    *   Net Income (Consolidated): 5,060,000,000 EUR.
    *   Add: Depreciation & Amortization: 4,774,000,000 EUR.
    *   Add: Deferred Tax Expense? `Income Tax Expense` (1,161) vs `Income Taxes Paid` (1,055). Deferred tax is roughly the difference plus other adjustments. `Deferred Tax Liabilities` increased from 11,364 to 11,682 (diff +318). `Deferred Tax Assets` increased from 5,917 to 6,321 (diff +404). Net Deferred Tax Asset increase is a use of cash/reduction in tax expense benefit?
    *   Standard FFO approximation: $Net Income + D\&A + Deferred Taxes$.
    *   Deferred Tax Expense = Current Tax Expense + Change in Deferred Tax Liab - Change in Deferred Tax Asset?
    *   Total Tax Expense = 1,161. Cash Tax = 1,055.
    *   Let's stick to the provided formula: $EBITDA - Cash Interest - Cash Taxes$.
    *   $FFO = 13,228 - 1,914 - 1,055 = 10,259$ million EUR.

### Step 4: Estimate Adjusted Debt

Formula: `Adjusted_Debt = (reported_debt + leases + pension_deficit + guarantees + hybrid_debt_portion + other_debt_like_items) - eligible_cash`

1.  **Reported Debt (Interest-bearing):**
    *   `Noncurrent Financial Liabilities`: 44,216,000,000 EUR.
        *   Includes: `Deudas Con Entidades De Credito...` (36,129), `Noncurrent Derivative Financial Liabilities` (3,690), `Noncurrent Lease Liabilities` (2,287), `Other Noncurrent Financial Liabilities` (1,534), `Instrumentos De Capital...` (576).
    *   `Current Financial Liabilities`: 25,079,000,000 EUR.
        *   Includes: `Deudas Con Entidades De Credito... Corrientes` (10,458), `Current Derivative Financial Liabilities` (3,398), `Current Lease Liabilities` (151), `Other Current Financial Liabilities` (5,058), `Instrumentos De Capital... Corriente` (87).
    *   Total Reported Financial Liabilities = $44,216 + 25,079 = 69,295$ million EUR.

2.  **Leases:**
    *   S&P treats lease liabilities as debt. They are already included in `Noncurrent Financial Liabilities` (2,287) and `Current Financial Liabilities` (151).
    *   Total Lease Liabilities = $2,287 + 151 = 2,438$ million EUR.
    *   Since they are already in Reported Financial Liabilities, we do not add them again unless "Reported Debt" referred only to bonds/loans. The label "Financial Liabilities" typically includes leases under IFRS 16. We will assume the sum of Financial Liabilities is the base debt.

3.  **Hybrid Debt / Perpetuals:**
    *   `Instrumentos De Capital Con Caracteristicas De Pasivo Financiero` (Liability-classified hybrids/perpetuals):
        *   Noncurrent: 576 million.
        *   Current: 87 million.
        *   Total: 663 million.
    *   These are included in Financial Liabilities. S&P often treats 50% or 100% of hybrids as debt depending on terms. Given they are classified as "Financial Liabilities" (Pasivo Financiero) rather than Equity, they are already in the debt figure. If they were in Equity, we would add them. Here, they are in Liabilities.

4.  **Pension Deficit:**
    *   `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 portion of pension liabilities to debt. We will add the full provision amount as a conservative estimate of the deficit/liability, or check if assets are netted. The balance sheet shows "Provisions", which are net liabilities.
    *   Adjustment: **+1,268 million**.

5.  **Other Debt-like Items:**
    *   `Noncurrent Derivative Financial Liabilities`: 3,690 million.
    *   `Current Derivative Financial Liabilities`: 3,398 million.
    *   Total Derivatives: 7,088 million.
    *   S&P typically includes derivative liabilities in debt if they are financing-related or if mark-to-market losses create a liability. They are already in Financial Liabilities.

6.  **Eligible Cash:**
    *   `Cash And Cash Equivalents`: 4,608,000,000 EUR.
    *   S&P deducts unrestricted cash from debt.
    *   Adjustment: **-4,608 million**.

7.  **Calculation of Adjusted Debt:**
    *   Base Financial Liabilities: 69,295 million.
    *   Add Pension Deficit (Provisions): 1,268 million.
    *   Less Eligible Cash: (4,608) million.
    *   $Adjusted Debt = 69,295 + 1,268 - 4,608 = 65,955$ million EUR.

    *Refinement on Hybrids:* The item `Instrumentos De Capital Con Caracteristicas De Pasivo Financiero` suggests these are legally equity-like but accounted for as liabilities, or vice versa? "Caracteristicas De Pasivo Financiero" means "Characteristics of Financial Liability". So they are liabilities. They are included in the 69,295.

    *Refinement on Derivatives:* S&P may exclude derivative liabilities from debt if they are hedging instruments and not indicative of leverage, but often includes them in "Gross Debt". However, for "Adjusted Debt" in utility ratings, derivatives are often excluded from the core debt measure if they are non-cash mark-to-market, or included if they represent settlement obligations. Given the volatility, let's look at standard S&P utility adjustments. Often, "Debt" for ratios excludes derivatives.
    If we exclude Derivatives from Debt:
    *   Derivatives (Noncurrent + Current) = $3,690 + 3,398 = 7,088$ million.
    *   Adjusted Financial Liabilities (excl. Derivatives) = $69,295 - 7,088 = 62,207$ million.
    *   Add Pension: 1,268 million.
    *   Less Cash: 4,608 million.
    *   Adjusted Debt = $62,207 + 1,268 - 4,608 = 58,867$ million.

    Let's check the treatment of `Other Noncurrent Financial Liabilities` (1,534) and `Other Current Financial Liabilities` (5,058). These likely contain short-term borrowings and other items.

    Let's reconsider the "Reported Debt" definition. Usually, S&P uses "Total Debt" which includes bonds, loans, and commercial paper.
    *   `Deudas Con Entidades De Credito...` (Noncurrent): 36,129
    *   `Deudas Con Entidades De Credito... Corrientes` (Current): 10,458
    *   Total Interest Bearing Debt (Bonds/Loans) = 46,587 million.
    *   Add Lease Liabilities: 2,438 million.
    *   Add Hybrid/Liability Instruments: 663 million.
    *   Add Other Financial Liabilities (likely short term debt/other): $1,534 + 5,058 = 6,592$ million.
    *   Sum = $46,587 + 2,438 + 663 + 6,592 = 56,280$ million.
    *   Wait, the sum of components:
        *   Noncurrent Fin Liab: 44,216.
        *   Current Fin Liab: 25,079.
        *   Total: 69,295.
    *   Components check:
        *   NC: 36,129 (Debt) + 576 (Hybrid) + 3,690 (Deriv) + 2,287 (Lease) + 1,534 (Other) = 44,216. Correct.
        *   C: 10,458 (Debt) + 87 (Hybrid) + 3,398 (Deriv) + 151 (Lease) + 5,058 (Other) = 19,152? No, $10,458+87+3,398+151+5,058 = 19,152$. The total Current Financial Liabilities is 25,079. There is a discrepancy of ~5,927.
        *   Looking at `Trade And Other Payables To Trade Suppliers`: 5,927. This is usually Operating, not Financial.
        *   Let's re-read the Current Liabilities section.
        *   `Current Financial Liabilities`: 25,079.
        *   Sub-items listed:
            *   Deudas...: 10,458
            *   Instrumentos...: 87
            *   Derivatives: 3,398
            *   Lease: 151
            *   Other Current Financial Liabilities: 5,058
            *   Sum: 19,152.
            *   Missing: $25,079 - 19,152 = 5,927$.
            *   Ah, `Trade And Other Payables To Trade Suppliers` is 5,927. Is it classified as Financial? Usually no. But maybe `Other Current Financial Liabilities` is larger? Or there are other items.
            *   Actually, `Trade And Other Payables` is listed separately under Current Liabilities, not under Current Financial Liabilities.
            *   Let's check `Other Current Liabilities`: 1,393.
            *   `Current Tax Liabilities`: 156.
            *   `Current Payables On Social Security`: 1,262.
            *   `Current Provisions`: 922.
            *   Total Current Liabs = 28,839.
            *   Sum of parts: $25,079 (Fin) + 5,927 (Trade) + 1,393 (Other) + 156 (Tax) + 1,262 (SocSec) + 922 (Prov) = 34,739$. This exceeds 28,839.
            *   There is likely double counting or hierarchy in the provided list. "Deudores Comerciales Y Otros Activos Corrientes Subtotal" etc.
            *   Let's trust the aggregate `Current Financial Liabilities`: **25,079**.
            *   And `Noncurrent Financial Liabilities`: **44,216**.
            *   Total Financial Liabilities: **69,295**.

    **S&P Adjustment for Derivatives:** S&P often excludes derivative liabilities from the debt measure for utilities unless they are settled in cash and represent a funding need. Given the size (7 billion), excluding them is standard for "Adjusted Debt" in utility coverage to avoid volatility.
    **S&P Adjustment for Cash:** Deduct full cash.
    **S&P Adjustment for Pensions:** Add pension deficit.

    Let's calculate Adjusted Debt excluding derivatives:
    *   Total Financial Liabilities: 69,295
    *   Less Derivatives: 7,088
    *   Net Financial Debt (incl leases/hybrids): 62,207
    *   Add Pension Deficit: 1,268
    *   Less Cash: 4,608
    *   **Adjusted Debt = 58,867 million EUR.**

    *Self-Correction on Hybrids:* The `Instrumentos De Capital Con Caracteristicas De Pasivo Financiero` are likely perpetuals. S&P typically treats 50% of perpetuals as equity and 50% as debt, or 100% debt if mandatory redemption. Since they are classified as Liabilities, they are 100% in the debt number. If S&P adjusts them to 50% equity, we would subtract 50%. However, without specific terms, and given they are "Liabilities", we keep them.

    Let's try including Derivatives (Conservative):
    *   Adj Debt = $69,295 + 1,268 - 4,608 = 65,955$ million.

    Which is more likely for S&P? For utilities, derivative liabilities are often excluded from the core debt ratio if they are non-cash MTM. Let's look at the `Noncurrent Derivative Financial Assets` (3,661) vs Liabilities (3,690). They are roughly matched. Net derivative position is small. Excluding gross derivatives is common. I will proceed with **Adjusted Debt = 58,867 million**.

### Step 5: Calculate FFO / Adjusted Debt

*   **FFO**: 10,259 million EUR.
*   **Adjusted Debt**: 58,867 million EUR.

$$Ratio = \frac{10,259}{58,867} \approx 0.17427$$

Let's double check the FFO calculation.
EBITDA: 13,228.
Cash Interest: 1,914.
Cash Taxes: 1,055.
FFO = 10,259.

Is there any other adjustment?
S&P often adds back "Minority Interest" (Noncontrolling Interests) dividends or subtracts them?
FFO is usually pre-minority interest.
The Net Income attributable to owners is 4,339.
Net Income total is 5,060.
Our FFO derivation from EBITDA is pre-tax and pre-minority.
$EBITDA - Cash Interest - Cash Taxes$ gives a figure that is effectively "Cash Flow from Operations before Working Capital Changes" roughly.
Actually, S&P FFO is closer to Net Income + D&A + Deferred Tax.
Let's check that method:
Net Income: 5,060.
+ D&A: 4,774.
+ Deferred Tax: (Change in DTL - Change in DTA).
DTL: 11,682 - 11,364 = +318.
DTA: 6,321 - 5,917 = +404.
Net Deferred Tax Expense = Current Tax Exp (1,161) - Cash Tax (1,055)? No.
Deferred Tax Expense = Total Tax (1,161) - Current Tax Provision.
Current Tax Provision is not explicitly given, but Cash Tax is 1,055.
Usually, $Deferred Tax = \Delta DTL - \Delta DTA = 318 - 404 = -86$ (Benefit).
So, $FFO \approx 5,060 + 4,774 - 86 = 9,748$.
This is lower than the 10,259 derived from EBITDA.
Why the difference?
$EBITDA (13,228) - Interest (3,042 accrual) - Tax (1,161 accrual) + D&A (4,774) = 13,228 - 3,042 - 1,161 + 4,774$? No.
$EBITDA - Depreciation = EBIT$.
$EBIT = 13,228 - 4,774 = 8,454$.
$EBIT - Interest (3,042) = PBT (5,412)$. (Reported PBT is 6,292. Difference is "Finance Income" 1,204? $8,454 - 3,042 + 1,204 = 6,616$. Still off. "Other Gains" 911? $6,616 + 911 = 7,527$. Close to 6,292. There are other items like share of associates.)

Let's stick to the Cash Flow based FFO as it is more robust for "Cash Interest" and "Cash Taxes".
However, S&P FFO is an accrual-based metric adjusted for cash items? No, S&P FFO is `Net Income + Depreciation + Deferred Taxes + Other Non-Cash`.
Let's use the Accrual based FFO:
Net Income: 5,060.
Depreciation: 4,774.
Deferred Taxes: -86.
Other Non-Cash:
- Share of associates (Equity method): The income is included in Net Income but no cash. `Investments In Associates` income? `Share Of Other Comprehensive Income` is 146. `Profit Loss` from associates is not explicitly broken out, but `Adjustments For Undistributed Profits Of Investments Accounted For Using Equity Method` is -146. This suggests the equity income was 146 and it was undistributed, so we subtract it? Or add it back?
In Cash Flow from Ops, we start with Net Income and adjust.
S&P FFO definition: `FFO = Net Income + Depreciation + Deferred Income Taxes + Other Non-Cash Items`.
Non-cash items often include:
- Equity in earnings of affiliates (subtract if not received as dividend).
- Gains/Losses on asset sales (subtract/add).

Let's look at `Cash Flows From Used In Operating Activities`: 10,443.
This is CFO.
S&P FFO is often very close to CFO for utilities, but adjusted for working capital volatility.
CFO = 10,443.
If we use CFO as a proxy for FFO (common in simple estimations if detailed adjustments aren't possible):
FFO = 10,443.

Let's compare:
Method 1 (EBITDA - Cash Int - Cash Tax): 10,259.
Method 2 (CFO): 10,443.
Method 3 (NI + D&A + Def Tax): 9,748.

The difference between CFO and EBITDA-CashInt-CashTax is working capital changes.
CFO includes changes in WC. S&P FFO typically *excludes* changes in WC (or normalizes them).
Therefore, Method 1 (EBITDA - Cash Int - Cash Tax) is a better proxy for "Unlevered Free Cash Flow" before capex, but FFO is usually accrual.
Actually, S&P's "Funds From Operations" for utilities is often defined as `EBITDA - Cash Interest - Cash Taxes`. This is a common simplification in rating agency reports for quick leverage checks.

Let's use **FFO = 10,259**.

Debt = 58,867.

Ratio = $10,259 / 58,867 = 0.17427$.

If we included Derivatives in Debt:
Debt = 65,955.
Ratio = $10,259 / 65,955 = 0.1555$.

S&P Global Ratings' actual reported FFO/Debt for Iberdrola in recent years has been around 15-18%.
In 2022, Iberdrola's leverage increased due to acquisitions.
Reported Net Debt was approx 60-65 billion.
EBITDA approx 13 billion.
FFO approx 10-11 billion.
Ratio approx 15-17%.

Given the ambiguity on Derivatives, standard S&P utility methodology often excludes derivative *liabilities* from debt if they are not settled, but includes them if they are. However, the "Adjusted Debt" usually focuses on interest-bearing debt. Derivatives don't bear interest in the same way. I will exclude them.

One final check on Cash.
Cash: 4,608.
Is all cash eligible? Yes, usually.

One final check on Pension.
Pension Provision: 1,268.
Is this the deficit? Yes, provisions are net liabilities.

Final Calculation:
FFO = 10,259
Adj Debt = 58,867
Ratio = 0.1743

<answer>0.1743</answer>