Fitch affirms Dominion at BBB+

Fitch Ratings said it affirmed the BBB+ issuer default rating of Dominion Resources, Inc. following the announcement of its proposed acquisition of Questar Corp. for $4.4 billion in cash.

The outlook is stable.

The ratings of Virginia Electric and Power Co. and Dominion Gas Holdings, LLC were also affirmed with a stable outlook.

Fitch said the affirmation reflects the moderate impact on consolidated credit metrics and the strong financial position and low risk nature of Questar's natural gas businesses.

The acquisition premium and EBITDA multiple are below those of other recent transactions. The purchase price equates to a premium of roughly 30% above Questar's average closing price over the past 20 trading days.

Including the assumption of about $1.6 billion of Questar consolidated debt the enterprise value of this transaction is $6 billion and the EBITDA multiple about 9.8 times.

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