Fitch rates Dominion Resources notes BBB+

Fitch Ratings said it assigned BBB+ ratings to Dominion Resources, Inc.'s new $500 million 6.4% senior unsecured notes due 2018, $400 million 7% senior unsecured notes due 2018 and $300 million floating-rating senior unsecured notes due 2010.

The outlook is stable.

The proceeds will be used for general corporate purposes, including the repayment of short-term debt.

The agency said Dominion's ratings are supported by cash flows from a large and diverse asset base, strong operating performance and liquidity, the passage of supportive 2007 Virginia legislation that lowered business risk and tightening energy and capacity markets in the Northeastern United States, which bodes well for future realized power pricing in the merchant generation segment.

Fitch's rating concerns include the execution risks associated with Dominion's significant capital spending plan, upward pressures on operating and fuel costs, fuel recovery lags and less than expected debt reduction in 2007 because Peoples and Hope proceeds were not received. Dominion is actively marketing Peoples and Hope.

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