Fitch affirms Dominion Resources

Fitch Ratings said it affirmed Dominion Resources, Inc. and its subsidiary Virginia Electric and Power Co.'s issuer default rating at BBB+.

The outlook is stable.

Dominion's ratings are supported by cash flows from its large, strategically located and well operated asset base, the agency noted.

The primary credit concerns are margin pressure and increasing environmental regulations that hurt the merchant generation cash flow prospects and execution risk relating to the significant capital spending plans at the regulated operations, according to the agency.

Vepco's ratings are underpinned by constructive state regulation that facilitates timely recovery of generation and transmission investments and a relatively robust economy in the service territory, the agency said.

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