S&P: UIL outlook stable

Standard & Poor's said it revised the outlook to stable from negative on UIL Holdings Corp. and its regulated electric utility subsidiary, United Illuminating Co., and affirmed their BBB corporate credit ratings.

The outlook revision follows UIL's completion of the $524 million equity portion of the financing necessary to complete the proposed acquisition of three Iberdrola USA subsidiaries, Southern Connecticut Gas Co., Connecticut Natural Gas Corp. and Berkshire Gas Co. UIL plans to acquire these companies for $1.3 billion and will still need to issue about $400 million of senior unsecured debt to complete the transaction financing.

The agency said the equity issuance addresses a significant component of the transaction financing and will help preserve the company's consolidated financial risk profile once the transaction closes.

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