Fitch lifts Duke Energy to BBB+

Fitch Ratings said it upgraded Duke Energy Corp.'s issuer default rating to BBB+ from BBB and removed the rating from Rating Watch positive, where it was placed on June 29, 2006.

The outlook is stable.

The agency said the upgrade reflects the company's strong consolidated credit profile, the substantial and geographically diverse cash flow and earnings derived from its four regulated electric and natural gas utility subsidiaries and a relatively low-risk business strategy intended to pursue regulated utility businesses with stable cash flow.

The higher ratings also recognize the overall corporate transformation and reduction in business risk that has occurred over the past year as a result of the spinoff to shareholders of Duke Capital, LLC, renamed Spectra Energy Corp.; the merger with Cinergy Corp. and subsequent sale of Cinergy's commercial marketing and trading business; and the monetization of the company's real estate subsidiary, Crescent Resources, through a joint venture and recapitalization, Fitch said.

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