NEW YORK (Standard&Poor's) March 2, 2006--Standard&Poor's Rating Services said today that Dominion Resources Inc.'s (BBB/Stable/A-2) announcement that it is selling two local distribution companies (LDCs) for $970 million is neutral to the company's credit quality and does not affect its rating. Dominion is selling the companies to Equitable Resources Inc. Although the LDCs were low-risk businesses, the sale does not have a negative effect on Dominion's overall business risk as they are relatively small. We expect the company to use the proceeds equally to pay down debt and for share repurchases, which is in line with the company's stated financing policy. Dominion has a significant growth capital program in 2006 and will likely be free cash
