Fitch affirms KeySpan

Fitch Ratings said it affirmed the ratings of KeySpan Corp. and subsidiary company, KeySpan Gas East Corp.

KeySpan's issuer default rating was affirmed at A- and senior unsecured debt rating at A-, along with KeySpan Gas's issuer default rating was affirmed at A- and senior unsecured debt rating at A.

The agency also said it has downgraded the issuer default rating for Brooklyn Union Gas Co. to A- from A, senior unsecured debt rating to A from A+ and the ratings for instruments issued by the New York State Energy Research and Development Authority for Brooklyn Union Gas Projects to A from A+.

The outlook is stable.

The affirmations are driven by stable utility credit profiles of KeySpan Gas and Brooklyn Union Gas, supported by the inclusion of regulatory risk mitigation mechanisms in multi-year utility rate plans, Fitch said.

Also, the substantial reduction in stand-alone KeySpan debt by $700 million to about $1 billion and sufficient liquidity support by ultimate parent company, National Grid plc, support the ratings and stable outlook.

Regulatory conditions imposed on Brooklyn Gas at the time of the acquisition by Grid, support notching Brooklyn Gas' rating to the A- level, the agency said.

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