S&P cuts Dominion Resources, debt

Standard & Poor's lowered its issuer credit rating on Dominion Resources Inc. (DRI) and its subsidiaries Virginia Electric & Power Co. and Dominion Gas Holdings LLC to BBB+ from A-.

S&P also lowered its rating on Dominion Resources’ senior unsecured debt and junior subordinated debt by one notch to BBB and BBB-, respectively.

At the same time, S&P lowered the senior unsecured debt at both Virginia Electric and Dominion Gas one notch to BBB+.

The agency affirmed the A-2 short-term rating on Dominion Resources. The rating outlook is stable.

“The downgrade of DRI and its subsidiaries reflects our expectations that the company will continue to grow through acquisitions at a faster pace than peers,” said S&P credit analyst Gabe Grosberg in a news release.

“This is based on our assessment of the company's master limited partnership, Dominion Midstream Partners LP, which adds a degree of complexity to the company's organizational structure, provides incremental opportunities and incentive for the company to complete acquisitions,” he added.

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