Fitch affirms Dominion Resources

Fitch Ratings said it affirmed Dominion Resources, Inc.'s BBB+ issuer default and senior unsecured debt ratings, BBB trust preferred securities and junior subordinated note ratings and F2 commercial paper rating.

The outlook is stable.

The affirmation follows the company's announcement that it intends to pursue the sale of most of its exploration and production assets. The assets identified for sale are 5.5 trillion cubic feet equivalent of proved exploration and production reserves.

The stable outlook incorporates Fitch's expectation that management will redeploy the proceeds from any sale of exploration and production assets in a manner that improves credit metrics. Management announced it intends to use the proceeds from any sale to reduce debt, repurchase common shares and invest in electric generation and energy distribution, transmission, storage and retail businesses.

Going forward, Dominion's ratings could be affected depending on the success of the divestiture process and the actual allocation of proceeds, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.