Moody's may cut Energy East

Moody's Investors Service said it placed under review for possible downgrade the long-term and short-term ratings of Energy East Corp. (Baa2 senior unsecured and Prime-2 short-term rating for commercial paper) and the long-term ratings of each of its rated utility subsidiaries, which include New York State Electric & Gas Corp. (Baa1 senior unsecured); Rochester Gas & Electric Corp. (Baa1 senior unsecured); Central Maine Power Co. (A3 senior unsecured); Connecticut Natural Gas Co. (A3 senior unsecured); Southern Connecticut Gas Co. (A3 senior secured); and Berkshire Gas Co. (Baa1 issuer rating).

At the same time, the agency said that the short-term rating for New York Electric's commercial paper program which is not part of this review process is affirmed at Prime-2.

"The review for possible downgrade primarily reflects Moody's concerns about marginally acceptable levels of key financial metrics for Energy East and its subsidiaries compared to the respective rating levels, which may be compounded by the expected financing required to fund significant capital expenditures over the next several years," said Moody's vice president and senior analyst, Kevin Rose.

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