Connecticut Light&Power Co.

S&P Global Ratings' negative outlook on CL&P reflects that we could downgrade parent Eversource's one or more notches over the next 6-12 months due to the possible shift in the company's growth strategy toward higher-risk offshore wind generation. The negative outlook also incorporates our view that the parent's FFO-to-debt ratio may weaken below our downgrade threshold of 15%. We could lower our ratings on CL&P if we lower our ratings on Eversource by one or more notches over the next 6-12 months. This could occur if the company's growth strategy suggests accelerated offshore wind development. We could also lower our ratings on Eversource if the company fails to take adequate countermeasures to bolster its credit metrics so that FFO to

...Key Strengths Key Risks Connecticut Light & Power Co. (CL&P) is a low-risk, rate regulated electric transmission and distribution (T&D) utility. Our ratings on CL&P are tied to ultimate parent Eversource Energy, hence our negative outlook reflects our outlook on Eversource. CL&P's regulatory construct includes forward-looking and capital-tracking mechanisms for portions of its capital spending. In addition, CL&P operates under an authorized equity capital structure of 53%. Overall, we view CL&P's management of regulatory risk as gradually improving. A lack of operating diversity makes the company largely dependent on Connecticut regulators to sustain credit quality. CL&P's large base of over 1.2 million mostly residential customers provides stability to the company's revenues and cash flows. The state attorney general's active involvement in rate matters exposes CL&P to political risks. CL&P's status as a core subsidiary of Eversource provides a one-notch uplift to our ratings. The revised...

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