Connecticut Light&Power Co.

The stable outlook on CL&P reflects our expectation that its effective risk management will persist, and that its financial measures will continue to support its stand-alone credit profile. We could lower the rating on CL&P if we downgrade parent Eversource. We could also lower the ratings on CL&P if its stand-alone FFO to debt consistently weakens to below 12%. We could raise the rating on CL&P if we raise our rating on Eversource while CL&P's FFO to debt remains consistently above 15%. Continued use of existing regulatory mechanisms in Connecticut for distribution rates, such as periodic rate case filings, capital trackers, and decoupling; Formula rate increases for the company's transmission rates under FERC's regulatory construct; Capital spending that averages about

...We expect CL&P to effectively manage regulatory risk, supporting our current business risk profile assessment. The company benefits from numerous regulatory mechanisms under the generally constructive Connecticut and Federal Energy Regulatory Commission (FERC) regulatory environments. However, given that a large proportion of operations are within Connecticut, the company is somewhat dependent on Connecticut regulators to sustain its credit quality. We expect CL&P's financial measures to remain within the intermediate financial risk profile category. Specifically, we forecast funds from operations (FFO) to debt to average 17%-19% throughout the forecast period, assessed under our low volatility financial benchmark table. We view CL&P as a core insulated subsidiary of Eversource. The cumulative value of structural and regulatory protections in place that insulate CL&P from Eversource, combined with the strength of CL&P's stand-alone credit profile, allow us to rate CL&P one notch above Eversource....

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