Please Note
We brought you to this page based on your search query. If this isn't what you are looking for, you can continue to Search Results for ""
The maximum number of items you can export is 3,000. Please reduce your list by using the filtering tool to the left.
Close
한국 사이트에서 영어 글로벌 무디스 사이트로 리디렉트 됩니다. 계속하시겠습니까?
메시지를 다시 보이지 않기
아니오
Close
Email Research
Recipient email addresses will not be used in mailing lists or redistributed.
Recipient's
Email

Use semicolon to separate each address, limit to 20 addresses.
Enter the
characters you see
Close
Email Research
Thank you for your interest in sharing Moody's Research. You have reached the daily limit of Research email sharings.
Close
Thank you!
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
LOG IN
Don't want to see this again?
REGISTER
OR
Accept our Terms of Use to continue to Moodys.com:

PLEASE READ AND SCROLL DOWN!

 

By clicking “I AGREE” [at the end of this document], you indicate that you understand and intend these terms and conditions to be the legal equivalent of a signed, written contract and equally binding, and that you accept such terms and conditions as a condition of viewing any and all Moody’s inform​ation that becomes accessible to you [after clicking “I AGREE”] (the “Information”).   References herein to “Moody’s” include Moody’s Corporation, Inc. and each of its subsidiaries and affiliates.

 

Terms of One-Time Website Use

 

1.            Unless you have entered into an express written contract with Moody’s to the contrary, you agree that you have no right to use the Information in a commercial or public setting and no right to copy it, save it, print it, sell it, or publish or distribute any portion of it in any form.               

 

2.            You acknowledge and agree that Moody’s credit ratings: (i) are current opinions of the future relative creditworthiness of securities and address no other risk; and (ii) are not statements of current or historical fact or recommendations to purchase, hold or sell particular securities.  Moody’s credit ratings and publications are not intended for retail investors, and it would be reckless and inappropriate for retail investors to use Moody’s credit ratings and publications when making an investment decision.  No warranty, express or implied, as the accuracy, timeliness, completeness, merchantability or fitness for any particular purpose of any Moody’s credit rating is given or made by Moody’s in any form whatsoever.          

 

3.            To the extent permitted by law, Moody’s and its directors, officers, employees, representatives, licensors and suppliers disclaim liability for: (i) any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with use of the Information; and (ii) any direct or compensatory damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud or any other type of liability that by law cannot be excluded) on the part of Moody’s or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with use of the Information.

 

4.            You agree to read [and be bound by] the more detailed disclosures regarding Moody’s ratings and the limitations of Moody’s liability included in the Information.     

 

5.            You agree that any disputes relating to this agreement or your use of the Information, whether sounding in contract, tort, statute or otherwise, shall be governed by the laws of the State of New York and shall be subject to the exclusive jurisdiction of the courts of the State of New York located in the City and County of New York, Borough of Manhattan.​​​

I AGREE
Rating Action:

Moody's Downgrades Keyspan to Baa1;Confirms P-2 CP with Stable Outlook

28 Aug 2007
Moody's Downgrades Keyspan to Baa1;Confirms P-2 CP with Stable Outlook

Approximately $4.5 Billion of Debt Affected

New York, August 28, 2007 -- Moody's Investors Service downgraded the senior unsecured long-term debt ratings of KeySpan Corporation (KSE) to Baa1 from A3 and those of its wholly-owned subsidiaries, KeySpan Energy Delivery Long Island (KEDLI) to A3 from A2, Boston Gas Company to Baa1 from A2 and KeySpan Generation to Baa1 from A3 with stable outlook. This action concludes the rating review initiated on February 27, 2006 following the company's announced intention of selling itself to National Grid plc, a UK gas and electricity transmission company, in a transaction valued at $7.3 Billion (approximately GBP3.8 Billion) plus the assumption of approximately $4.5 Billion in KSE debt. This merger has been approved by KSE and National Grid shareholders and various US Federal and state regulatory commissions. The New York State Public Service Commission's approval last week was the final regulatory hurdle to this merger.

Moody's rating of Baa1 with stable outlook for the senior unsecured rating of KSE results from:

(1) KSE's current operating performance has been below Moody's expectations for the A3 rating category as reflected in the application of the Moody's rating methodology for North American Diversified Natural Gas Transmission And Distribution Companies. According to this rating methodology, KSE rates a Baa1 for the three year average of financial results ending in 2006. The company has been exhibiting Baa credit metrics primarily as result of its high level of acquisition goodwill and debt assumed in prior mergers which has taken several years to reduce.

Additionally, the weakness in KSE's credit metrics relative to its prior A3 rating category is likely to persist as current dividend pressures are expected to continue in light of its expected part in helping National Grid service the $7.3 Billion acquisition debt. While KSE's available cash flows for capital expenditures and maintenance of ongoing operations are expected to be sufficient for its operating needs, any pressure to upstream available cash flows to service this new acquisition debt at the parent level will undoubtedly reduce its financial flexibility for prepaying its own debt or that of its operating subsidiaries.

(2) KSE's need for rate recoveries in certain regulated operating companies are expected to continue post-merger, as in the case of its Long Island gas utility (KEDLI) which is slated to receive a rate freeze through 2012 following a one-time rate increase of $60 Million post-merger. KEDLI's return on equity (ROE) is approximately 7% for the fiscal year ending 2006 which is noticeably lower than its allowed 10.5%p.a.

(3) continued pressure on low ROEs for some KSE subsidiaries given lack of conservation protection in all of the KSE gas distribution subsidiaries and lack of efficient weather protection in KSE's New England subsidiaries.

Additionally, the cash flow pressures on KSE and its subsidiaries to service their own debt as well as that resulting from its UK parent's acquisition is also expected to diminish their financial flexibility. The needs of these LDCs to finance their own increases in working capital and gas inventory in an environment of higher gas prices, are expected to further pressure their credit metrics.

(4) National Grid may also register a premium/goodwill for the KSE acquisition that may put added pressures on KSE's financial leverage as Moody's subtracts goodwill from capitalization. KSE's New England subsidiaries have been previously burdened by goodwill arising from KSE's 2000 push-down of acquisition goodwill and debt resulting from its purchase of Eastern Enterprises which remain on their books. Any additional goodwill that may be imputed to KSE as result of its merger with National Grid would further raise this leverage calculation.

The downgrade in KeySpan Generation results from bringing the ratings of this electric power generating subsidiary of KSE closer in line with the credit ratings of its peers.

KEY RATING DRIVERS

KSE's debt to capitalization has historically been high and more compatible with those of Baa rated diversified gas companies. In addition, its Retained Cash Flow to Debt ratio has trailed that of its peers and is not expected to improve materially given the renewed pressures that are anticipated as a consequence of its acquisition by National Grid. These credit metrics that have been historically weaker than those of its peers, are expected to remain weak in light of the new demands on its available cash.

KEDLI and Boston Gas's credit metrics of return on equity (ROE), earnings before interest and taxes (EBIT) to interest expense and debt to capitalization have come under additional pressure as their current rate design does not incorporate a full decoupling mechanism. Additionally, these credit metrics for the 2006 fiscal year end have been lower than those of A rated peers. Moody's does not believe that these credit measures will materially improve following the acquisition by National Grid as KSE will have less discretion and ability to help KEDLI and Boston Gas Company prepay some of their debt load. The rating adjustments for KEDLI and Boston Gas also reflect the application of Moody's rating methodology for North American regulated gas utility local distribution companies (LDCs).

RATING OUTLOOK

The stable outlook anticipates that National Grid will not push down any portion of its $7.3 Billion acquisition debt down to KSE or its operating subsidiaries or result in any reductions in current utility rate structures. Any developments to the contrary or actions to increase or accelerate cash dividends from KSE or its subsidiaries from their recent historical levels could result in changing the outlook to negative. It also does not consider the potential impact of any of its core assets sales such as the Ravenswood power generating station. Furthermore, neither this outlook nor the ratings have factored in the potential negative consequences that could arise from any goodwill as result of this acquisition by National Grid.

Downgraded Ratings of KSE are as follows:

KeySpan Corporation—to Baa1 senior unsecured from A3;

KeySpan Generation—to Baa1 senior unsecured from A3;

Boston Gas Company—to Baa1 senior unsecured from A2.

KeySpan Gas East Corporation (KEDLI)—A3 senior unsecured from A2;

Confirmed Ratings are as follows:

Keyspan Corporation---P-2 Commercial Paper

Colonial Gas Company—A2 senior secured.

KeySpan Corporation is headquartered in Brooklyn, New York and is a holding company, operating six regulated utilities that distribute natural gas to approximately 2.6 million customers in New York City, Long Island, Massachusetts and New Hampshire. It also owns and operates electric generating plants in Nassau and Suffolk Counties on Long Island and in Queens County in New York City and is the largest investor owned electric generation operator in New York State. Under contractual arrangements, it also provides power, electric transmission and distribution services, billing and other customer services for approximately one million electric customers of the Long Island Power Authority (LIPA).

New York
John Diaz
Managing Director
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

New York
Edward Tan
Vice President - Senior Analyst
Corporate Finance Group
Moody's Investors Service
JOURNALISTS: 212-553-0376
SUBSCRIBERS: 212-553-1653

No Related Data.
© 2021 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE APPLICABLE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS (“ASSESSMENTS”), AND OTHER OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. AND/OR ITS AFFILIATES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS DO NOT COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS, ASSESSMENTS AND OTHER OPINIONS AND PUBLISHES ITS PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS, AND PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS OR PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.

ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.

MOODY’S CREDIT RATINGS, ASSESSMENTS, OTHER OPINIONS AND PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing its Publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING, ASSESSMENT, OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any credit rating, agreed to pay to Moody’s Investors Service, Inc. for credit ratings opinions and services rendered by it fees ranging from $1,000 to approximately $5,000,000. MCO and Moody’s Investors Service also maintain policies and procedures to address the independence of Moody’s Investors Service credit ratings and credit rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold credit ratings from Moody’s Investors Service and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any credit rating, agreed to pay to MJKK or MSFJ (as applicable) for credit ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY550,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.