Moody’s changes Dominion Energy to negative

Moody's Investors Service said it changed Dominion Energy Inc.'s outlook to negative from stable and affirmed its Baa2 senior unsecured rating and P-2 short-term commercial paper rating.

The agency also continued the review for downgrade of the ratings for both South Carolina Electric & Gas Co. (SCE&G, Baa2 long-term issuer rating) and its parent company Scana Corp. (Baa3 senior unsecured

These actions follow the companies' announced plans to merge in an all-stock transaction.

"Dominion's financial credit ratios will be lower for longer," Moody’s vice president, senior analyst Ryan Wobbrock said in a news release.

"The cash flow drag from tax reform, in concert with higher regulatory risks in South Carolina, will exacerbate Dominion's weak position in the Baa2 rating category."

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