Dominion Energy Inc.

The positive outlook reflects a one-in-three likelihood that we will raise the ratings over the next 24 months. The sale of its midstream operations and the cancellation of the Atlantic Coast Pipeline strengthen DEI's business risk profile by reducing risk and focusing growth on its lower-risk, regulated utility operations. On a pro forma basis, we expect its regulated utility businesses will account for about 85%-90% of the consolidated company. We expect DEI's financial measures generally remain in line with expectations and DEI's funds from operations (FFO) to debt will be 15%-16% through the forecast periods. We could affirm the ratings and revise the outlook to stable within the next 24 months if the company is unable to complete the sale

...Dominion Energy Inc. (DEI) has completed the sale of majority of its gas transmission and storage assets to Berkshire Hathaway Energy Co. (BHE) for approximately $2.7 billion in cash proceeds and $5.3 billion of related long-term debt. This strategic transformation allows the company to focus on its higher-growth utility businesses and decrease business risk by reducing its exposure to commodity risks, volumetric risks, and operational risks. Also, DEI's consolidated financial measures are in line with prior expectations, given the asset sale transferred about $5.3 billion of DEI's long-term debt....

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