Fitch Rates Dominion Resource's $350MM 6% Senior Notes 'BBB+'; Outlook Stable
Posted on: Friday, 30 November 2007, 12:00 CST
Fitch Ratings has assigned a 'BBB+' rating to the new $350 million 6.0% senior notes issued by Dominion Resources, Inc. (Dominion). The notes are unsecured and rank equally with existing and future unsecured debt of Dominion. The proceeds from the notes are expected to be used for general corporate purposes, including payment of a portion of the expected $3 billion tax payment related to the sale of certain exploration and production assets that will be due in December 2007. The Rating Outlook is Stable.
This year has been a transition year for Dominion. The company sold 5.5 trillion cubic feet of oil and gas reserves in five transactions for a total of $13.9 billion. In addition, the sales of two local gas distribution companies are pending and several merchant peaking plants were sold. Electric legislation was passed in Virginia that will eliminate retail competition for electric customers, end capped base rates on Dec. 31, 2008, established incentives for the addition of new capacity and achievement of renewable portfolio standards, and revised the way utility returns on equity are set. The proceeds from asset sales are being used to reduce debt and repurchase common shares. Fitch expects the ratio of (funds from operations + interest)/interest to be in excess of 4 times (x) at the end of 2008 and the capital structure to be in the mid-50% range.
Dominion is a diversified energy company that owns assets including: a regulated electric utility that serves 2.4 million customers in Virginia; an extensive gas pipeline and storage network; a regulated gas utility in Ohio that serves 1.2 million customers; and wholesale generation capacity.
Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.
Source: Business Wire
Related Articles
- Elbit Imaging Ltd. Announces Interest Rate for the Next Interest Period for Series B Notes
- Wisconsin Energy's Leverett to Participate on a Panel at 2009 Citi Power, Gas and Utilities Conference
- Bord Gais Energy Implements Oracle Utilities Customer Care and Billing to Optimize Customer Service and Reduce Operating Costs
- Lights Back On for 28,600 Ameren Illinois Utilities Customers, Electricity to be Flowing for Majority of Customers by Late Tuesday
- Lower Wholesale Electricity Costs Add Up to Savings For Ameren Illinois Utilities Customers
- Wisconsin Energy's Leverett to Present June 5 at 2008 Citi Power, Gas and Utilities Conference
- Workshop Explores How Energy Efficiency Issues Impact Utility Customer Service
- Fitch Assigns Basin Electric Power Cooperative Commercial Paper 'F1+'
- A8Media Introduces SavingsAccounts.Com: New Site Compares Interest Rates and Online Banking Services
- Inflation Rises to 2.2 Per Cent in December; Higher Interest Rates Expected
 |
 |
User Comments (0)
RSS Feeds