Moodys.com
Close
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
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 takes action on certain National Grid subsidiaries and affirms other ratings

29 Mar 2019

NOTE: On April 25, 2019, the press release was corrected as follows: In the list of Affected Ratings for Niagara Mohawk Power Corporation, changed the action for the Pref. Stock, to “Downgraded to Baa2 from Baa1” from “Affirmed Baa1.” Revised release follows.

London, 29 March 2019 -- Moody's Investors Service ("Moody's") has today changed the outlook to negative from stable on National Grid North America Inc. (NGNA) and affirmed the company's Baa1 senior unsecured and Prime-2 short-term ratings. Concurrently, it has changed the outlook to negative from stable on National Grid Generation LLC (Genco) and affirmed the company's Baa1 issuer rating.

Separately, Moody's has downgraded the senior unsecured ratings of KeySpan Gas East Corporation (KEDLI) and Niagara Mohawk Power Corporation (NiMo) to A3 from A2, both with stable outlooks. The rating agency also changed the outlook to positive from stable on the rating of New England Power (NEP) and affirmed the A3 rating.

Moody's has also affirmed the ratings of National Grid Plc. The outlook remains stable.

Moody's has taken related rating actions on other National Grid subsidiaries. The affected entities are NGG Finance plc, National Grid Electricity System Operator Ltd (NG ESO), National Grid Electricity Transmission plc (NGET), National Grid Gas Plc (NGG), British Transco International Finance B.V., National Grid USA (NG USA), Boston Gas Company, Colonial Gas Company, Massachusetts Electric Company, Narragansett Electric Company and The Brooklyn Union Gas Company (KEDNY).

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

RATINGS RATIONALE

NGNA - NEGATIVE OUTLOOK AND AFFIRMATION

The negative outlook on NGNA reflects the persistent weakness of the company's key credit metrics as a result of significant holding company debt. Including debt at NG USA, another intermediate holding company owned by NGNA, holding companies account for more than 40% of the debt of the NGNA group as of March 2018. As a result of this debt and associated financing costs, NGNA's ratio of cash from operations before working capital (CFO pre-WC) to gross debt has averaged 10.0% over the three years to March 2018, and Moody's does not expect this to improve materially in the year to March 2019.

Affirmation of NGNA's Baa1 ratings takes into account the group's demonstrated willingness to support NGNA's credit profile, as evidenced by the fact that NGNA has paid no dividends since at least 2011 and that National Grid contributed additional equity to support growth in 2013-14 and 2017-18. 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.

GENCO - NEGATIVE OUTLOOK AND AFFIRMATION

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 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, we regard it as likely that the PSA will be terminated or renegotiated on potentially less favorable terms in 2025 or allowed to lapse in 2028.

KEDLI AND NIMO - DOWNGRADE AND STABLE OUTLOOK

The downgrade of the ratings to A3 from A2 reflects Moody's assessment that underlying CFO pre-WC/debt at both KEDLI and NiMo is likely to fall short of Moody's revised guidance for an A2 rating of at least the low-20s, in percentage terms.

This assessment takes into account the impact the New York Public Service Commission's order of August 2018, reflecting tax reforms in the United States, which will reduce both companies' revenue starting in January 2019 from the level agreed in its current rate plan. Revenue allowances will also be lower from January 2021, compared to previous expectations, due to the pass-back of excess deferred taxes.

While the companies benefit from membership of the group under National Grid Plc, this does not support credit quality at the A2 level.

The A3 ratings positively reflect both companies' low business risk and the transparent and established regulatory environment in New York state, which provides a variety of mechanisms to ensure timely recovery of costs and generally stable and predictable cash flows. The rating also takes account of the benefit of regulatory ring-fencing provisions including dividend restrictions if total debt exceeds 58% of tangible capital at KEDLI and 55-57% at NiMo.

Moody's recognises that NiMo's CFO pre-WC/debt may be depressed for several years as cash collected on behalf of the New York State Energy Research and Development Authority (NYSERDA) is remitted, and as over-collections are refunded to customers under the terms of the company's 2018 rate plan. Conversely, KEDLI's metrics will be supported in 2019-20 because of the phasing of tariff increases in its current rate plan. The stable outlooks reflect Moody's expectation that, excluding these effects, both companies will achieve CFO pre-WC to debt above the mid-teens.

NEP - AFFIRMATION AND POSITIVE OUTLOOK

The positive outlook on NEP reflects a strengthening of its financial profile which, should it be maintained, would support a higher rating. The rating action follows a $505 million equity injection that reduced the company's debt/capitalisation, including Moody's adjustments, from 39% in March 2017 to 26% in March 2018. Following the recapitalisation of the business, Moody's expects NEP to maintain funds from operations (FFO) to net debt above 30%, which is strongly positioned for the assigned rating. The positive outlook also reflects recent decisions on the allowed returns of transmission owners, which in Moody's view mitigates the downside risk to NEP's cash flow.

NEP's A3 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.

NATIONAL GRID PLC - AFFIRMATION AND STABLE OUTLOOK

Affirmation of National Grid Plc's ratings reflects Moody's expectation that the company will maintain retained cash flow (RCF) to net debt in line with guidance for the current rating over the remaining two years of the RIIO-T1 price control, supported by the company's decision to not offset the dilution from scrip dividends in 2018-19 and 2019-20. It also reflects the generally stable and predictable cash flows of National Grid's operating subsidiaries, underpinned by well-established and transparent regulatory frameworks with very little volume risk, and diversification across multiple UK and US regulatory regimes.

The ratings are constrained by the debt burden at the different group entities and structural subordination of National Grid Plc relative to its operating companies and intermediate holding companies, and by the likelihood of lower cash flow from UK electricity and gas transmission under the RIIO-T2 price controls that will begin in April 2021. The affected operating companies, NGET and NGG, account for around half of National Grid's regulated assets as of March 2018.

Although the expected reduction in cash flows from NGET and NGG will put pressure on FFO and, absent dividend reductions, RCF at National Grid, the stable outlook recognises that the regulatory review for RIIO-T2 is still in progress and that key decisions remain outstanding, including on allowed returns. It also reflects Moody's expectation that the group will take action, if necessary, to mitigate the expected pressure on metrics.

NG ESO - AFFIRMATION AND STABLE OUTLOOK

Affirmation of NG ESO's rating reflects, as positives, NG ESO's regulation by Ofgem, its generally strong energy supplier counterparties and moderate underlying net debt. However, the rating is constrained by NG ESO's exposure to potentially 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. Although any difference will be recovered with a two-year lag, NG ESO is exposed to the risk of temporary cash outflows that are large relative to its Regulatory Asset Value and underlying cash flow. NG ESO has mitigated the associated liquidity risks by putting in place a large revolving credit facility that Moody's believes would be sufficient to support several years of plausible under-recoveries and other downside scenarios.

The rating is also constrained by ongoing changes to the regulatory framework, including the proposal that NG ESO should recover a regulated margin on its internal costs from April 2021, rather than a return on its RAV plus regulatory depreciation. Ofgem has not yet provided any guidance on the allowed margin, which will be an important element of long-run returns.

NG ESO's rating is supported by Moody's assessment that there is a high likelihood that National Grid would provide financial assistance, including increasing its access to liquidity, should it become necessary to maintain NG ESO's credit quality.

The stable outlook on NG ESO reflects Moody's expectation that the company will achieve broadly stable underlying cash flows over the remainder of the current regulatory period, which runs until March 2021, and that the framework for the forthcoming period will not result in materially weaker cash flows or a deterioration in the company's business risk profile. The outlook also reflects the stable outlook on National Grid Plc.

NGET AND NGG - AFFIRMATIONS AND STABLE OUTLOOK

Affirmation of the A3 senior unsecured rating of NGET reflects its monopoly position as the 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. Credit quality also benefits from relatively low leverage and borrowing costs, compared to both regulatory assumptions as other energy networks in Britain, with net debt/RAV around 55%. Its credit quality is constrained by the weaker credit quality of the broader National Grid group.

Affirmation of the A3 senior unsecured rating of NGG and its financing subsidiary, British Transco International Finance B.V., reflects its monopoly position as the owner of the gas transmission system in Great Britain, its very low business risk, the well-established and transparent regulatory framework under which it operates and the company's moderate gearing, with net debt/RAV below 60%. However, credit quality is constrained by the weaker credit quality of the broader National Grid group, underperformance on controllable costs in the current regulatory period, and longer-term uncertainty surrounding gas demand in the UK.

The stable outlook on both NGET and NGG reflects Moody's expectation that the companies will maintain adjusted interest coverage ratios comfortably above guidance for the current rating of 1.6x in the RIIO-2 regulatory period that starts in April 2021, despite an expected significant cut in allowed returns, as a result of their low financing costs.

NG USA - AFFIRMATION AND STABLE OUTLOOK

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. The rating is constrained by significant additional debt at the holding company level, although this largely reflects intercompany lending from other entities in the National Grid group. As a result, NG USA's ratio of CFO pre-WC/debt has been in the low teens, excluding the impact of preferred dividends.

The stable outlook reflects Moody's expectation that National Grid will take steps to strengthen NG USA's balance sheet in order to achieve CFO pre-WC/debt trending toward 15%, in line with guidance for the Baa1 rating.

KEDNY -- AFFIRMATION AND STABLE OUTLOOK

The A3 issuer rating of KEDNY reflects the low business risk associated with gas distribution, the supportive regulatory environment in New York, and the additional creditor protection from various regulatory ring-fencing provisions, such as explicit leverage and dividend restrictions and a 'golden share' arrangement that reduce the risk of financial distress.

KEDNY's credit quality is constrained by weak credit metrics and the limited likelihood of a recovery over the medium term. KEDNY's ratio of cash from operations before working capital (CFO pre-WC) to debt was 9.8% in the March 2018 financial year. The scope for improvement in the medium term is limited by tax reforms, which will reduce KEDNY's revenue starting January 2019 from the level agreed in its current rate plan, and higher spending on environmental remediation, which may not be immediately recovered through revenue.

BOSTON GAS COMPANY, COLONIAL GAS COMPANY, MASSACHUSETTS ELECTRIC COMPANY, NARRAGANSETT ELECTRIC COMPANY - AFFIRMATIONS AND STABLE OUTLOOK

The A3 senior unsecured rating of Boston Gas Company and the A3 issuer rating and A1 senior secured rating of Colonial Gas Company reflect the low business risk of gas distribution and the generally supportive regulatory environment in Massachusetts, where a variety of de-risking provisions for utilities have been incorporated in recent rate case.

The A3 issuer rating and Baa2 preferred stock rating of Massachusetts Electric Company are supported by the low business risk of electricity transmission and the generally supportive regulatory environment in Massachusetts.

The A3 issuer rating and A1 senior secured rating of Narragansett Electric Company are supported by the diversification of its revenues between distribution and transmission, its stable and predictable cash flows, and the generally supportive regulatory environment in Rhode Island.

The ratings of all four companies are constrained by the absence of meaningful ring-fencing provisions that restrict higher leverage and the additional debt at the parent holding companies.

The stable outlooks on the issuers reflects Moody's expectation that they will maintain CFO pre-WC/debt of at least high teens, in percentage terms, in line with Moody's guidance for the assigned ratings.

WHAT COULD CHANGE THE RATINGS UP/DOWN

Given credit metrics that are likely to remain weak for the assigned ratings, an upgrade of National Grid Plc and NGG Finance is not currently anticipated. The ratings could be downgraded if RCF/net debt appeared likely to fall 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 rating could also be downgraded if the risk of adverse political interventions increased, particularly in the United Kingdom. Guidance for National Grid Plc's current rating may be revised as Ofgem's price review progresses and the group's business mix evolves. Any revision will take into account factors including any changes in Moody's assessment of the stability and predictability of the group's regulatory frameworks and the incremental basis risk resulting from the change in indexation of NGET and NGG's revenues as compared to their RPI-linked liabilities.

The outlook on NGNA could be stabilised if the company took measures to strengthen its balance sheet such that CFO pre-WC/debt appeared likely to trend above 15%. The rating could be downgraded if metrics were expected to fall consistently short of this level.

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.

The ratings of NiMo, Boston Gas Company, Colonial Gas Company, Massachusetts Electric Company and Narragansett Electric Company could be upgraded if their CFO pre-WC/debt was sustainably above the low-20s, in percentage terms. The ratings could be downgraded if regulatory support reduced or CFO pre-WC/debt fell consistently below the high teens.

Given metrics that are weak for the assigned rating, upgrades of KEDNY and KEDLI are not currently anticipated. The ratings could be downgraded if CFO pre-WC/debt no longer appeared likely to trend toward the mid-teens. The rating of KEDNY could also be downgraded if future rate plans do not provide for reasonably certain and timely recovery of environmental remediation costs.

The ratings of New England Power could be upgraded if the company demonstrated FFO/net debt sustainably in the mid-20s, in percentage terms. The outlook could be stabilised if FFO/net debt instead appeared likely to return to the mid- to high-teens.

The rating of NG ESO could upgraded once the regulatory regime for NG ESO has established a longer track record of transparent operation, with NG ESO demonstrating predictable cash flows that provide for adequate and timely cost recovery and a fair return on its investments. The rating could be downgraded if National Grid's rating were downgraded, or if the system operator regulatory framework appeared likely to become less stable and predictable.

An upgrade of NGUSA is unlikely, given credit metrics that are weak for the assigned rating. However, NGUSA could be downgraded if CFO pre-WC/debt no longer appear likely to trend toward 15%.

LIST OF AFFECTED RATINGS

Downgrades:

..Issuer: KeySpan Gas East Corporation

....LT Issuer Rating, Downgraded to A3 from A2

....Senior Unsecured Regular Bond/Debenture, Downgraded to A3 from A2

..Issuer: Niagara Mohawk Power Corporation

....LT Issuer Rating, Downgraded to A3 from A2

....Senior Unsecured Regular Bond/Debenture, Downgraded to A3 from A2

....Pref. Stock, Downgraded to Baa2 from Baa1

Affirmations:

..Issuer: Boston Gas Company

....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: Brooklyn Union Gas Company, The

....LT Issuer Rating, Affirmed A3

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

Issuer : KeySpan Corporation (Assumed by National Grid USA)

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

..Issuer: Colonial Gas Company

....LT Issuer Rating, Affirmed A3

....Senior Secured First Mortgage Bonds, Affirmed A1

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

..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 Secured First Mortgage Bonds, Affirmed A1

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

..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: National Grid Electricity System Operator Ltd

....LT Issuer Rating, Affirmed Baa1

..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, Remains Stable

..Issuer: Brooklyn Union Gas Company, The

....Outlook, Remains Stable

..Issuer: Colonial Gas Company

....Outlook, Remains Stable

..Issuer: KeySpan Gas East Corporation

....Outlook, Changed To Stable From Negative

..Issuer: Massachusetts Electric Company

....Outlook, Remains Stable

..Issuer: Narragansett Electric Company

....Outlook, Remains Stable

..Issuer: National Grid North America Inc.

....Outlook, Changed To Negative From Stable

..Issuer: National Grid Plc

....Outlook, Remains Stable

..Issuer: National Grid USA

....Outlook, Remains Stable

..Issuer: NGG Finance plc

....Outlook, Remains Stable

..Issuer: Niagara Mohawk Power Corporation

....Outlook, Changed To Stable From Negative

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

....Outlook, Remains Stable

..Issuer: National Grid Electricity Transmission plc

....Outlook, Remains Stable

..Issuer: National Grid Gas Plc

....Outlook, Remains Stable

..Issuer: New England Power Company

....Outlook, Changed To Positive From Stable

..Issuer: National Grid Electricity System Operator Ltd

....Outlook, Remains Stable

..Issuer: National Grid Generation LLC

....Outlook, Changed To Negative From Stable

The principal methodology used in rating National Grid Electricity System Operator Ltd, National Grid Plc, National Grid North America Inc., The Brooklyn Union Gas Company, National Grid USA, Boston Gas Company, Colonial Gas Company, KeySpan Gas East Corporation, Massachusetts Electric Company, Narragansett Electric Company, Niagara Mohawk Power Corporation, NGG Finance plc and KeySpan Corporation was Regulated Electric and Gas Utilities published in June 2017. The principal methodology used in rating New England Power Company, National Grid Electricity Transmission plc, National Grid Gas Plc and British Transco International Finance B.V. was Regulated Electric and Gas Networks published in March 2017. The principal methodology used in rating National Grid Generation LLC was Unregulated Utilities and Unregulated Power Companies published in May 2017. 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 GBP15.3 billion in 2017-18 and total assets of GBP58.8 billion as of 31 March 2018. 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 ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt 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.

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

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.

Graham Taylor
VP - Senior Credit Officer
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.
© 2019 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 INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. 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 MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S 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. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S 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 AND MOODY’S 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 OR MOODY’S 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.

CREDIT RATINGS AND MOODY’S 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 the Moody’s 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 OR 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 rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS 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 rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

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

​​​​
Moodys.com