Moody’s cuts Dominion Energy

Moody's Investors Service said it downgraded the ratings of Dominion Energy Gas Holdings, LLC, including its senior unsecured rating to A3 from A2 and short-term commercial paper rating to P-2 from P-1.

The action concludes the review for downgrade that began on June 11.

The outlook is stable.

“The downgrade reflects mostly debt-funded capital spending that has increased at DEGH in recent years, which has reduced the ratio of funds from operations to debt to the high-teen's percent range,” Ryan Wobbrock, Moody’s vice president and senior analyst, said in a news release.

“Project completion and rate cases for its natural gas pipeline and local gas distribution segments will stem the decline in credit metrics and provide a financial boost in the coming years, but the full implementation of federal tax reform will keep consolidated cash flow to debt at around 20%.”

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