Fitch: Dominion Gas view to negative

Fitch Ratings said it affirmed the BBB+ issuer default rating of Dominion Resources, Inc. and the A- issuer default ratings of subsidiaries, Virginia Electric and Power Co., Dominion Gas Holdings, LLC and Questar Gas Co.

Fitch said it expects Dominion Resources' business risk profile to be elevated for the next few years.

Dominion Resources' senior unsecured debt was affirmed at BBB+, junior subordinated rating at BBB, enhanced junior subordinated rating at BBB-, trust preferred ratings at BBB- and short-term issuer default rating at F2.

Virginia Electric's senior secured debt and revenue bonds were affirmed at A+, senior unsecured debt and revenue bonds rating at A and F2 and short-term issuer default rating at F2.

Questar Gas's senior unsecured debt rating was affirmed at A and short-term issuer default rating at F2.

Dominion Gas's senior unsecured debt rating was affirmed at A- and short-term issuer default rating at F2.

The outlook on Dominion Resources, Virginia Electric and Questar is stable.

The outlook on Dominion Gas also was revised to negative from stable.

The negative outlook reflects that leverage remained elevated at the end of 2016 as a result of management's previous strategy to move debt from corporate parent Dominion Resources to Dominion Gas to achieve a more balanced capital structure at the parent level, Fitch said.

As a result, higher debt levels and recent variability in Dominion Gas's cash flows have resulted in leverage measures that are high for the rating level, the agency said.

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