Fitch rates Dominion notes BBB+

Fitch Ratings said it assigned a rating of BBB+ to the $500 million of 4.9% notes due Aug. 1, 2041 issued by Dominion Resources, Inc. (BBB+ issuer default rating).

The outlook is stable.

Proceeds will be used for general corporate purposes, including reduction of commercial paper borrowings.

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

Concerns are the execution risk relating to the significant capital spending plans at Vepco and the substantial debt at the parent company level, which directly finances all operations except Vepco, as well as weak power pricing that limits merchant generation cash flow prospects in the near term, Fitch said.

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