Moody's cuts New England Power

Moody's Investors Service said it downgraded the ratings of New England Power Co. (senior unsecured to A3 from A1 and short term ratings to P-2/VMIG-2 from P-1/VMIG-1), Massachusetts Electric Co. (senior secured to A2 from A1 and short-term ratings to P-2/VMIG-2 from P-1/VMIG-1) and Narragansett Electric Co. (senior secured to A2 from A1).

Moody's said it also downgraded the rating of tax exempt debt obligations of Nantucket Electric Co. (senior secured to A2 from A1), which are unconditionally guaranteed by Massachusetts Electric.

At the same time, Moody's said it changed the direction of the review of the ratings for Niagara Mohawk Power Corp. (A3 senior secured) to a review for possible upgrade whereas the ratings were previously under review for possible downgrade.

National Grid USA's prime-2 short-term debt rating for commercial paper was not under review and is affirmed at that level, the agency noted, adding that the downgrade of ratings primarily reflects the significant debt taken on by National Grid plc, the ultimate parent company in the United Kingdom, to fund the acquisition of the gas distribution assets of Southern Union Co. for $500 million in August 2006 and the recently completed acquisition of KeySpan Corp. common stock for $7.3 billion, which closed on Aug. 24.

© 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.