...GRC Filing Delay Negative: A delay in KeySpan Gas East Corp.'s (KGE) next general rate case (GRC) application filings with the New York Public Service Commission (NYPSC) will continue to constrain credit protection measures, at least through fiscal 2016/2017. With increased capital spending and rising operating costs, Fitch Ratings believes New York regulators may adopt measures that will spread an increase in retail rates over an extended period. Such a scenario will adversely affect cash flows and credit protection measures at KGE in the short term. Decline in Credit Metrics: Fitch projects the retail tariff freeze, increase in operating costs and elevated capex will weaken KGE's credit protection measures over the rating horizon (through fiscal year-end 2017). Under a conservative rating model, Fitch forecasts KGE's adjusted debt/EBITDAR to be around 4.7x by March 31, 2017. Fitch's forecast for KGE's FFO-based fixed-charge coverage ratio is about 5.0x. Stand-Alone Profile: Fitch's rating...
