S&P cuts Dominion Resources view to negative

Standard & Poor’s said it revised its outlook on Dominion Resources Inc. and its subsidiaries Virginia Electric & Power Co. and Dominion Gas Holdings LLC to negative from stable.

At the same time, S&P affirmed its ratings on Dominion and its subsidiaries, including the A- issuer credit ratings.

“We based the negative outlook on our expectations that the company’s large growth capital investments in higher-risk, non-rate-regulated utility assets, such as Cove Point’s liquefied natural gas terminal, could weaken both the company’s business risk profile and financial measures, potentially leading to a one-notch downgrade,” said S&P credit analyst Gabe Grosberg in a news release.

“We expect that during the company’s period of high capital spending, the financial measures will weaken toward the lower-half of the range for the ‘significant’ financial risk profile category.”

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