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 changes outlook on National Grid plc and most subsidiaries to negative; affirms ratings

14 Aug 2020

London, 14 August 2020 -- Moody's Investors Service (Moody's) has today changed the outlook to negative from stable on National Grid plc, the ultimate holding company of the National Grid group, and affirmed its ratings.

Concurrently, Moody's has changed the outlook to negative from stable while affirming the ratings of most of the group's largest operating subsidiaries, primarily transmission networks in the UK and transmission and distribution utilities in the US. The affected entities are National Grid Electricity Transmission plc (NGET), National Grid Gas plc (NGG), Boston Gas Company (Boston Gas), Massachusetts Electric Company (MECO) and Narragansett Electric Company (NECO).

Separately, Moody's has affirmed the ratings, and maintained the negative outlook, for (1) group's top US intermediate holding company, National Grid North America Inc. (NGNA); (2) National Grid Generation LLC (Genco); and (3) two of the group's New York operating subsidiaries, KeySpan Gas East Corporation (KEDLI) and Niagara Mohawk Power Corporation (NiMo);

Moody's has placed the ratings of The Brooklyn Union Gas Company (KEDNY) on review for downgrade. Moody's has upgraded the issuer rating of National Grid Electricity System Operator Ltd (NG ESO) to A3 from Baa1 and changed the outlook to negative from stable.

The rating agency has assigned an A3 issuer rating to Boston Gas Company. Boston Gas Company was the surviving entity following a reorganization which saw it merge with its small sister company, Colonial Gas Company. Consequently, Moody's has also withdrawn the long-term issuer rating of Colonial Gas Company.

Moody's has also taken related rating actions on National Grid USA (NG USA) and wholly owned finance subsidiaries of the group, NGG Finance plc and British Transco International Finance B.V.

A complete list of affected ratings appears toward the end of this press release.

RATINGS RATIONALE

NATIONAL GRID PLC -- NEGATIVE OUTLOOK AND AFFIRMATION

The negative outlook for National Grid plc reflects the group's exposure to forthcoming regulatory determinations. Specifically, and in the context of limited headroom, it reflects the risk that the group may not maintain a financial profile in line with Moody's guidance for the Baa1 rating. Pressure on metrics will be exacerbated by the impact of the coronavirus pandemic although some of the effects will reverse over time.

National Grid plc has recently exhibited little flexibility in its Baa1 rating category with the ratio of Retained Cash Flow (RCF) to Net Debt -- 9.4% and 9.1% in FY2019 and FY2020, respectively -- close to Moody's minimum guidance of 9.0%. Metrics have been depressed by the capital-intensive nature of the group's business, particularly in the US; material shareholder distributions; and substantial additional debt at various holding companies.

In the next 12 months, National Grid will receive final regulatory determinations in both the UK and New York which together account for over 75% of the group's main regulated assets. Absent mitigating action, Moody's expects these settlements will weaken key credit metrics of the relevant subsidiaries and consequently the credit quality of the group as a whole.

National Grid's UK electricity and gas transmission businesses under NGG and NGET account for around half of its regulated assets. In July, the energy regulator in Great Britain, Ofgem, published its draft determination for the forthcoming price control (RIIO-T2, which will run from April 2021 to March 2026). The regulator proposed to cut allowed equity returns by around half, on a like-for-like basis, and materially reduce the scope for financial outperformance compared to the current price control (RIIO-T1). The final determination, which may be different from the draft determination following companies' responses to the consultation, is due in December 2020.

The coronavirus outbreak adds to headwinds. Regulatory protections around recovery of incremental bad debt and coronavirus related costs are less comprehensive for National Grid's US operations than those for an under-recovery of allowed revenues for its main UK and US regulated subsidiaries, where it is purely a timing impact. Additionally, Moody's believes that the deteriorating economic outlook will result in greater regulatory scrutiny of the impact on consumers of rate case proposals. Finally, government bond yields falling to fresh lows since the virus outbreak will pressure allowed equity returns in jurisdictions where prevailing yields are key inputs into regulatory decisions (as evident in Ofgem's draft determination for RIIO-2 with the fall in the risk-free rate being the main driver for the cut in allowed equity returns), absent any offsetting actions by regulators.

Affirmation of the ratings of National Grid plc and its financing subsidiary, NGG Finance plc, reflect the monopoly position and the low business risk of its electricity and gas networks in the UK and transmission and distribution utilities in the US, which are diversified across several well-developed regulatory regimes. It also considers National Grid's track record of action to maintain credit quality.

NGET AND NGG -- NEGATIVE OUTLOOK AND AFFIRMATION

The negative outlook on NGET and NGG is driven by the risks to the credit quality of the group under National Grid plc. On a standalone basis, key financial metrics for each entity are consistent with a higher rating but Moody's does not allow ratings for these transmission companies to "pierce" the rating agency's assessment of the group's consolidated credit quality at the A3 rating level. Regulatory restrictions and ring-fencing provisions that apply in their license do not provide sufficient credit insulation to de-link the ratings at this level.

Despite a challenging draft determination for the forthcoming RIIO-T2 price controls and a likely reduction in operating cash flows from April 2021, Moody's expects that both companies will maintain adjusted interest coverage ratios (AICR) comfortably above guidance for the current rating of at least 1.6x. This reflects their solid financial profile with relatively low leverage and borrowing costs, compared to both regulatory assumptions and other energy networks in Great Britain. NGG's AICR metrics will be supported by the continuing receipt of early termination payments from energy suppliers for the replacement of NGG's domestic gas meters with 'smart' meters given the roll-out now appears unlikely to be completed before 2025.

Affirmation of the A3 senior unsecured rating of NGET further takes into account its monopoly position as owner of the high-voltage electricity transmission system in England and Wales and operator of the transmission system in England, Wales and Scotland, as well as its very low business risk and the well-established and transparent regulatory regime for the sector in Great Britain. It also reflects Moody's expectation that NGET will continue to be geared at or close to regulatory assumptions (60% until March 2021 with regulator proposing 55% in RIIO-T2).

Affirmation of the A3 senior unsecured rating of NGG and its financing subsidiary, British Transco International Finance B.V., similarly takes account of its monopoly position as the owner of the gas transmission system in Great Britain, its very low business risk and the well-established and transparent regulatory framework under which it operates. It also reflects Moody's expectation that NGG will continue to be geared at or close to regulatory assumptions (62.5% until March 2021 with regulator proposing 60% in RIIO-T2).

BOSTON GAS, MECO and NECO -- NEGATIVE OUTLOOK AND AFFIRMATION

The negative outlook for Boston Gas, MECO and NECO reflects the identified risks to the consolidated credit quality of the wider National Grid group. Moody's considers on a standalone basis that MECO and NECO will have headroom to minimum guidance for the current rating (CFO pre-WC at least in the high teens in percentage terms). Although National Grid manages its financing and liquidity on a fully group basis, Moody's considers the linkages for its US subsidiaries are greater than for its UK subsidiaries.

None of the subsidiaries have revolving credit facilities in their own name. Short-term liquidity requirements are managed via the group's regulated money pool. All the regulated subsidiaries can lend and borrow from the pool; however, the unregulated holding companies, NG USA and NGNA, may only act as lenders. Boston Gas, MECO and NECO have extensively utilized such arrangement in recent years, with MECO currently having no long-term debt authorization (although it has recently submitted to the regulator a new financing petition for fresh authorization).

Affirmation of the A3 issuer rating of NECO reflects the diversification of its revenues between distribution and transmission, its stable and predictable cash flows, and the generally supportive regulatory environment in Rhode Island.

Affirmation of the A3 issuer rating and Baa2 preferred stock rating of MECO reflects the low business risk of electricity distribution and a regulatory environment in Massachusetts that has become more supportive in recent years, evidenced in MECO's performance-based rate plan approved last year. MECO has increased cash flow visibility for a further four years under the primary term of this rate plan.

Affirmation of the A3 senior unsecured rating of Boston Gas Company and the A1 senior secured rating of bonds originally issued by Colonial Gas Company, as well as the assignment of an A3 issuer rating to Boston Gas Company, reflects the low business risk of gas distribution and supportive regulatory environment in Massachusetts. Moody's expects additional credit supportive provisions to be included in these businesses next rate plan -- National Grid has said it intends to file later this year.

The substantial additional debt at the parent holding companies, NG USA and NGNA, and the absence of significant ring-fencing provisions - the dividend lock-up for Boston Gas, MECO and NECO only applies if their debt to capitalization will exceed 70% - constrain the rating of these operating subsidiaries. To service this debt, National Grid has generally extracted dividends from operating companies with a stronger financial profile, whilst ensuring their capital structures remain closely aligned to regulatory assumptions as they undertake capital programmes, and supported businesses. Over calendar 2013 -- FY2017, MECO's achieved ROE was below 5% and the group took no dividends from this business. Similarly, Boston Gas received a $500 million equity injection in FY2020 to offset the one-off impact of the labour dispute in Massachusetts that caused CFO pre-WC / debt to be below 5% in FY2019.

KEDLI, NIMO, NGNA AND GENCO-- MAINTAINS NEGATIVE OUTLOOK AND AFFIRMATION

Moody's decision to maintain the negative outlook on KEDLI and NiMo reflects that (1) the challenging operating environment, with additional challenges pertaining to New York; and (2) both companies are weakly positioned against ratio guidance of CFO pre-WC / debt in the high teens in percentage terms. Recent rate case determinations by the state regulator have continued to provide lower than average return on equity levels (both equity thickness and allowed RoE), included extensive coronavirus related provisions -- both with tariffs and greater impediments to building of new gas infrastructure. These pressures are greater for KEDLI (1) given further delays in securing new rates - now unlikely to be effective until December 2020, compared to April 2020 in its original filing; (2) all its operations are gas distribution compared to the substantial majority of NiMo's operations being electric; and (3) the absence of a resolution to gas security of supply constrains in downstate New York where it operates.

Affirmation of KEDLI's and NiMo's ratings reflects the low business risk of their distribution operations; the (to-date) supportive regulatory environment in New York; and the additional creditor protections from various regulatory ring-fence provisions, such as explicit leverage and dividend restrictions and a 'golden share' arrangement that reduce the risk of financial distress.

Moody's decision to maintain the negative outlook on NGNA takes into account the pressures facing the broader group and the rating agency's view that the operating environment for NGNA's operating subsidiaries has become more challenging over the last 12 months. This reflects recent rate case determinations by the New York state energy regulator, where around 60% of the US group's regulated assets are located, with the coronavirus outbreak accentuating these headwinds due to the longer-term economic impact. Absent further measures to bolster credit quality, there is a significant risk that ratios remain below minimum guidance for the current rating -- CFO pre-WC/debt of at least 15%.

The $2.5 billion equity injection in August 2019 is credit positive but pressure on operating cash flows will constrain improvement in key credit metrics, which have been persistently weaker than guidance in recent years. Moody's anticipates measures will continue to focus on reducing the material levels of holding company debt. These totalled around 40% of the debt of the NGNA group at March 2020 when another intermediate holding company owned by NGNA, NG USA is included. Moody's had expected NGNA's cash flow from operations pre-working capital (CFO pre-WC / debt) to strengthen to 12-13% by March 2021 following the latest injection by the group - $2,525 million in August 2019 (over 10% of NGNA's debt at March 2020).

Affirmation of NGNA's Baa1 ratings reflects the group's demonstrated willingness to support NGNA's credit profile, as evidenced by National Grid making almost $5 billion of equity injections into equity into NGNA since FY2014, including $2.5 billion in August 2019. The ratings also reflect the low business risk of electricity transmission and electricity and gas distribution, as well as the NGNA group's diversification across four supportive regulatory frameworks.

The negative outlook on Genco is linked to that of NGNA because Genco's weaker underlying credit quality is offset by Moody's assessment that its parent companies are highly likely to provide support if it were to become necessary.

In addition to the likelihood of support from NGNA and National Grid plc, Genco's Baa1 issuer rating reflects the company's good cash flow visibility under a Power Supply Agreement (PSA) with the Long Island Power Authority that covers substantially all of the company's output and provides for a pass-through of fuel, tax and certain other costs. Genco's rating is constrained by its reliance on a single customer, the age and low utilisation of its assets, which were built between 1956 and 1977, and its small scale. Given the unfavorable policy environment and market conditions for fossil fuel generation in New York state, reflected in LIPA providing advanced notice of ramp down for two of Genco's non-steam generation units in recent months, Moody's regards it as likely that the PSA will be terminated or renegotiated on potentially less favorable terms in 2025 or allowed to lapse in 2028.

NG USA -- NEGATIVE OUTLOOK AND AFFIRMATION

The negative outlook reflects a combination of (1) limited financial flexibility at the current rating level, accentuated by the more challenging operating environment of its regulated subsidiaries; and (2) the strong linkages and dependence with its weaker parent NGNA. External debt, commercial paper and assumed long-dated legacy debt have amounted to around 15-20% of the consolidated NG USA group's external debt in recent years. With the increased pressure on operating cash flows of its regulated subsidiaries, initially from US tax reform, this has left NG USA with limited financial flexibility at guidance for the current rating (CFO pre-WC / debt of at least 15%). NG USA's metrics have been further depressed by the company upstreaming around $0.6 billion of preferred stock dividends per annum (which we ascribed 50% equity credit to) in order for NGNA to repay over $7 billion of intercompany loans last decade. Whilst these intercompany loans now total around $1 billion, NGNA has received material equity injections since 2013-14, and Moody's expect dividend requirements to moderate (absent further material growth in NGNA's renewables business), almost a third of its outstanding debt at March 2020 was advances from NGNA.

Affirmation of the Baa1 issuer rating of NG USA reflects the low business risk of electricity transmission and electricity and gas distribution, as well as the group's diversification across four supportive regulatory frameworks.

KEDNY -- REVIEW FOR DOWNGRADE

Moody's has today placed KEDNY's A3 issuer and senior unsecured ratings on review for downgrade. The rating review is prompted by the persistently weak credit metrics and absence of a timely and favourable resolution to the company's ongoing rate case settlement in downstate New York.

In recent years, KEDNY has had the weakest key credit metrics of National Grid's US regulated subsidiaries. It has also the most material environmental remediation liabilities, over $1.9 billion at March 2020 following a further increase, with the associated higher spend making the company more dependent on material tariff increases which will be more challenging with the coronavirus outbreak and New York's ambitious decarbonisation objectives. As with KEDLI, the operating environment for gas distribution in New York is more challenging with the increasing opposition to the building of new gas infrastructure.

Moody's currently expects that any downgrade will likely to be limited to one notch and will seek to conclude the ratings review as soon as possible, once there is clarity on settlement discussions.

NEW ENGLAND POWER COMPANY -- STABLE OUTLOOK AND AFFIRMATION

The outlook change to stable from positive is linked to that of the consolidated credit quality of the wider National Grid group. Moody's considers New England Power Company (NEP) to have the strongest financial profile of the group's US subsidiaries and expects NEP to maintain FFO to net debt above 25%, well above minimum guidance for the assigned rating. Cash flows will benefit from the higher authorized returns for its transmission operations, with achieved ROE of at least 11% in recent years, which is earnt on a much larger proportion of its regulatory capital structure (66% compared to around 50%). Moody's expectations that (1) the higher returns, compared to the group's other state regulated utilities; and (2) the thicker equity will persist for the foreseeable future is the driver for NEP's rating to pierce the consolidate credit quality of the group despite the absence of significant ring-fencing provisions, with dividend lock-up arrangements identical to those for MECO and NECO.

Affirmation of NEP's A3 issuer rating reflects the very low business risk of electricity transmission, the Federal Energy Regulatory Commission's well-established and transparent regulatory framework, and a tariff formula that allows for the timely recovery of operating and capital spending.

NG ESO -- UPGRADE AND NEGATIVE OUTLOOK

The upgrade of NG ESO's issuer rating to A3 from Baa1 reflects the marked improvement in the entity's business risk profile from changes proposed and made to the regulatory framework. In July 2020, Ofgem published its draft proposals for the forthcoming price control. Alongside this, Ofgem confirmed the removal, from April 2021, of potential material mismatches between NG ESO's payments to transmission owners and the associated recovery from electricity generators and consumers, which may be higher or lower if electricity demand differs from NG ESO's forecast. This had acted as the most material constraint on the rating, due to the magnitude of the sums involved (potentially as large in FY2021 as its existing regulated asset base), although the company had taken steps to manage the liquidity risk. Moody's notes that NG ESO faces a time lag in recovering up to GBP100 million of costs in FY2021 arising from actions taken to balance the grid under the exceptional circumstances caused by the national lockdown to manage the coronavirus outbreak.

On account of its ownership by the National Grid group, for which the company is a small but strategically very important subsidiary, NG ESO has access to significant liquidity facilities relative to its size (more than twice its regulated asset base at March 2020), and as a result NG ESO's credit quality is interlinked with that of the consolidated credit quality of the wider group. This is reflected in the negative outlook.

FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGS

Given credit metrics that are likely to remain weak for the assigned ratings, an upgrade of National Grid plc and NGG Finance plc is not currently anticipated. The outlook could be stabilised if RCF/Net Debt appeared likely to return to at least 9% from FY2022 onwards. This could be because of (1) more favourable regulatory determinations in the UK and New York than currently expected; or (2) National Grid taking further steps to defend credit quality. The ratings could be downgraded if RCF/net debt appeared likely to remain below 9%, if the contribution of unregulated earnings increased significantly, or if the supportiveness of the regulatory regimes under which the group operates deteriorated.

The outlook on NGET, NGG, NG ESO, Boston Gas, MECO and NECO could be stabilised if the outlook on National Grid plc were stabilised. The ratings could be downgraded if National Grid plc were downgraded.

The outlooks on KEDLI and NiMo could be stabilized if the companies were expected to exhibit CFO pre-WC / debt at least in the high teens in percentage terms on an underlying basis. For KEDLI it would also require (1) a prompt rate case settlement; and (2) risks around the long-term solutions to gas supply constraint in downstate New York to be resolved without material detriment to the company.

The outlook on NGNA could be stabilised if (1) there were measures to strengthen its balance sheet such that CFO pre-WC/debt appeared likely to trend above 15%; and (2) the outlook on National Grid plc were stabilised. The rating could be downgraded if metrics were not expected to reach 15% on a timely basis or National Grid plc was downgraded.

The outlook on NG USA could be stabilised if (1) the outlook on NGNA were stabilized; and (2) the company was expected to exhibit CFO pre-WC/debt of at least 15%

The outlook on Genco could be stabilised if the outlook on NGNA were stabilised. The rating could be downgraded if NGNA were downgraded, or if the LIPA PSA were terminated and Genco did not provide a clear plan to retire outstanding debt.

KEDNY's rating could be confirmed if (1) the company received a prompt and favourable multi-year rate case settlement under which it was expected to exhibit CFO pre-WC / debt at least in the high teens in percentage terms; and (2) risks around the long-term solutions to gas supply constraint in downstate New York were resolved without material detriment to the company. If both were not forthcoming in a timely manner the ratings would be downgraded.

Upward rating pressure on NEP's rating would arise if the outlook on National Grid plc were stabilised. Downward rating pressure is not expected absent a significant adverse regulatory development that resulted in a material reduction in the equity layer in its regulatory capital structure, which supports its strong financial profile. A downgrade of National Grid plc would not result in a downgrade of NEP.

LIST OF AFFECTED RATINGS

Placed on Review for Downgrade:

..Issuer: Brooklyn Union Gas Company, The

....LT Issuer Rating, currently A3

....Senior Unsecured Regular Bond/Debenture, currently A3

Upgrades:

..Issuer: National Grid Electricity System Operator Ltd

....LT Issuer Rating, Upgraded to A3 from Baa1

Withdrawals:

..Issuer: Colonial Gas Company

....LT Issuer Rating previously rated A3

Assignments:

..Issuer: Boston Gas Company

....LT Issuer Rating, Assigned A3

Affirmations:

..Issuer: Boston Gas Company

....Senior Unsecured Regular Bond/Debenture, Affirmed A3

..Issuer: Colonial Gas Company

....Senior Secured First Mortgage Bonds, Affirmed A1 (Assumed by Boston Gas Company)

....Senior Unsecured Regular Bond/Debenture, Affirmed A3 (Assumed by Boston Gas Company)

Issuer : KeySpan Corporation

....Senior Unsecured Regular Bond/Debenture, Affirmed Baa1 (Assumed by National Grid USA)

..Issuer: KeySpan Gas East Corporation

....LT Issuer Rating, Affirmed A3

....Senior Unsecured Regular Bond/Debenture, Affirmed A3

..Issuer: Niagara Mohawk Power Corporation

....LT Issuer Rating, Affirmed A3

....Senior Unsecured Regular Bond/Debenture, Affirmed A3

....Pref. Stock, Affirmed Baa2

..Issuer: Massachusetts Electric Company

...LT Issuer Rating, Affirmed A3

....Pref. Stock, Affirmed Baa2

....Senior Unsecured Regular Bond/Debenture, Affirmed A3

..Issuer: Narragansett Electric Company

....LT Issuer Rating, Affirmed A3

....Pref. Stock, Affirmed Baa2

....Senior Unsecured Regular Bond/Debenture, Affirmed A3

Issuer: National Grid North America Inc.

....ST Issuer Rating, Affirmed P-2

....Commercial Paper, Affirmed P-2

....LT Issuer Rating, Affirmed Baa1

....Senior Unsecured MTN Program, Affirmed (P)Baa1

....Senior Unsecured Regular Bond/Debenture, Affirmed Baa1

..Issuer: National Grid plc

....LT Issuer Rating, Affirmed Baa1

.... Commercial Paper, Affirmed P-2

....Senior Unsecured MTN Program, Affirmed (P)Baa1

....Other Short Term (P)P-2

....Senior Unsecured Regular Bond/Debenture, Affirmed Baa1

....Senior Unsecured. Shelf, Affirmed (P)Baa1

..Issuer: National Grid USA

....LT Issuer Rating, Affirmed Baa1

.... Commercial Paper, Affirmed P-2

..Issuer: NGG Finance plc

....Backed Senior Subordinated Regular Bond/Debenture, Affirmed Baa3

..Issuer: British Transco International Finance B.V.

...Backed Senior Unsecured Regular Bond/Debenture, Affirmed A3

..Issuer: National Grid Generation LLC

....LT Issuer Rating, Affirmed Baa1

..Issuer: National Grid Electricity Transmission plc

....Commercial Paper, Affirmed P-2

....Senior Unsecured MTN Program, Affirmed (P)A3

....Other Short Term, Affirmed (P)P-2

....Backed Senior Unsecured Regular Bond/Debenture, Affirmed A3

....Underlying Senior Unsecured Regular Bond/Debenture, Affirmed A3

....Senior Unsecured Regular Bond/Debenture , Affirmed A3

..Issuer: National Grid Gas plc

.... Senior Unsecured MTN Program, Affirmed (P)A3

....Other Short Term, Affirmed (P)P-2

....Commercial Paper, Affirmed P-2

....Backed Senior Unsecured Regular Bond/Debenture, Affirmed A3

....Senior Unsecured Regular Bond/Debenture, Affirmed A3

..Issuer: New England Power Company

....LT Issuer Rating, Affirmed A3

....Pref. Stock, Affirmed Baa2

....Senior Unsecured Regular Bond/Debenture, Affirmed A3

Outlook Actions:

..Issuer: Boston Gas Company

....Outlook, Changed To Negative from Stable

..Issuer: Brooklyn Union Gas Company, The

....Outlook, Changed To Rating Under Review From Negative

..Issuer: KeySpan Gas East Corporation

....Outlook, Remains Negative

..Issuer: Massachusetts Electric Company

....Outlook, Changed To Negative from Stable

..Issuer: Narragansett Electric Company

....Outlook, Changed To Negative from Stable

..Issuer: National Grid North America Inc.

....Outlook, Remains Negative

..Issuer: National Grid plc

....Outlook, Changed To Negative from Stable

..Issuer: National Grid USA

....Outlook, Changed To Negative from Stable

..Issuer: NGG Finance plc

....Outlook, Changed To Negative from Stable

..Issuer: Niagara Mohawk Power Corporation

....Outlook, Remains Negative

..Issuer: British Transco International Finance B.V.

....Outlook, Changed To Negative from Stable

..Issuer: National Grid Electricity Transmission plc

....Outlook, Changed To Negative from Stable

..Issuer: National Grid Gas plc

....Outlook, Changed To Negative from Stable

..Issuer: New England Power Company

....Outlook, Changed To Stable from Positive

..Issuer: National Grid Electricity System Operator Ltd

....Outlook, Changed To Negative From Stable

..Issuer: National Grid Generation LLC

....Outlook, Remains Negative

..Issuer: Colonial Gas Company

....Outlook, No Outlook from Stable

The pricipal methodology used in rating National Grid plc, NGG Finance plc, National Grid Electricity System Operator Ltd, National Grid North America Inc.,National Grid USA, Boston Gas Company , Brooklyn Union Gas Company, The, Colonial Gas Company, KeySpan Corporation, KeySpan Gas East Corporation, Massachusetts Electric Company , Narragansett Electric Company and Niagara Mohawk Power Corporation was Regulated Electric and Gas Utilities published in June 2017 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1072530. The principal methodology used in rating National Grid Electricity Transmission plc, National Grid Gas Plc, British Transco International Finance B.V. and New England Power Company was Regulated Electric and Gas Networks published in March 2017 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1059225. The principal methodology used in rating National Grid Generation LLC was Unregulated Utilities and Unregulated Power Companies published in May 2017 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1066389. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of these methodologies.

The National Grid group owns a range of largely regulated businesses focusing on the electricity and gas transmission networks in the UK and transmission and distribution utilities in the US. The company reported total revenue of GBP14.5 billion in 2019-20 and total regulated and other assets of GBP45.2 billion as of 31 March 2020. In the UK, National Grid Electricity Transmission plc owns the high-voltage electricity transmission network in England and Wales and National Grid Electricity System Operator Ltd operates the system across Great Britain. National Grid Gas plc owns and operates the high pressure gas transmission system in Britain. In the US, via subsidiaries of National Grid North America Inc., National Grid distributes electricity to 3.4 million customers in Massachusetts, Rhode Island and upstate New York and gas to 3.6 million customers in upstate New York, New York City, Long Island, Massachusetts and Rhode Island. National Grid also has a number of related businesses that operate outside of traditional regulatory price controls, such as electricity generation, liquefied natural gas importation and storage, interconnectors, property and metering.

REGULATORY DISCLOSURES

For further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.

For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

The ratings have been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.

These ratings are solicited. Please refer to Moody's Policy for Designating and Assigning Unsolicited Credit Ratings available on its website www.moodys.com.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1133569.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Philip Cope
Asst Vice President - Analyst
Infrastructure Finance Group
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Neil Griffiths-Lambeth
Associate Managing Director
Infrastructure Finance Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Releasing Office:
Moody's Investors Service Ltd.
One Canada Square
Canary Wharf
London E14 5FA
United Kingdom
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

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.