S&P raises Dominion Resources outlook to positive

Standard & Poor's said it affirmed its BBB corporate credit rating on Dominion Resources Inc. and revised its outlook on the company to positive from stable.

The rating action follows Dominion's announcement that it proposes to sell a majority of its exploration and production assets, the agency said, adding that the rating action on Dominion also reflects management's stated intention to use sale proceeds in a manner that would maintain credit measures, with some proceeds to retire debt even while reducing business risk.

"The positive outlook is premised on our expectation that management will have greater emphasis on low risk businesses while deploying excess cash," said S&P credit analyst Aneesh Prabhu.

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