S&P rates Drewcat Capital notes BB-

Standard & Poor's said it assigned its BB- senior debt rating to Drewcat Capital Ltd.'s $50 million principal at-risk variable-rate notes, which are due Dec. 28, 2006.

The agency said that the proceeds from the issuance of the notes will provide Dominion Resources Inc. (BBB/stable/A-2) with a source of parametric coverage for hurricanes in three hurricane calculation locations on a per-occurrence basis over a six-month period.

As part of the transaction, Drewcat also entered into a counterparty contract with Dominion, under which Dominion will make quarterly payments to Drewcat of 20.60% multiplied by the principal amount on an actual/360 basis, the agency noted.

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