We upgraded holding company DTE Energy Co. and its utility subsidiaries, Detroit Edison Co. (DE) and Michigan Consolidated Gas Co. (MichCon), to 'BBB+' from 'BBB' to reflect the company's decreasing regulatory risk and improved financial measures. We raised the senior secured debt rating on MichCon to 'A' from 'BBB+' to reflect the strong recovery prospects for the first mortgage bonds. We are revising the recovery rating to '1+' from '1'. The stable outlook reflects our expectations that the cap on electric choice will not exceed 10% over the intermediate term and that the Michigan economy will continue to gradually improve. We maintained the business risk profile and financial risk profile as strong and significant, respectively. NEW YORK (Standard&Poor's)
