Moody’s cuts KeySpan, Niagara Mohawk debt

Moody's Investors Service said it changed the outlook to negative from stable on National Grid North America Inc. and affirmed the company's Baa1 senior unsecured and Prime-2 short-term ratings.

Concurrently, the agency changed the outlook to negative from stable on National Grid Generation LLC and affirmed the company's Baa1 issuer rating.

Separately, Moody's downgraded the senior unsecured ratings of KeySpan Gas East Corp. and Niagara Mohawk Power Corp. to A3 from A2, both with stable outlooks.

The agency also changed the outlook to positive from stable on New England Power and affirmed the A3 rating.

The agency said the downgrade reflects Moody's assessment that underlying ratio of cash from operations before working capital at both KeySpan and Niagara Mohawk is likely to fall short of Moody's revised guidance for an A2 rating.

The agency said the negative outlook on National Grid North America reflects the persistent weakness of the company's key credit metrics as a result of significant holding company debt.

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