Dominion Energy Inc. And Subs. 'BBB+' Ratings Affirmed; Outlook Remains Negative Pending Completion Of Business Review

Richmond, Va.-based Dominion Energy Inc. (DEI) announced the strategic divestiture of wholly owned subsidiaries The East Ohio Gas Co. (EOGC), Public Service Co. of North Carolina (PSCNC), and Questar Gas Co. (Questar), along with Wexpro Co. (not rated) to Enbridge Inc., for a combined transaction value totaling about $14 billion. The company expects to use all of the after-tax proceeds ($8.7 billion) to reduce leverage. While the transaction is supportive of DEI's credit quality, DEI's capital spending plan remains elevated, and the company's business review is still pending, which it expects to complete before year-end. We also revised our assessment of EOGC, Questar, and PSCNC's group status to nonstrategic from core, and revised our assessment of Dominion Energy South Carolina's

...September 7, 2023 - Richmond, Va.-based Dominion Energy Inc. (DEI) announced the strategic divestiture of wholly owned subsidiaries The East Ohio Gas Co. (EOGC), Public Service Co. of North Carolina (PSCNC), and Questar Gas Co. (Questar), along with Wexpro Co. (not rated) to Enbridge Inc., for a combined transaction value totaling about $14 billion. The company expects to use all of the after-tax proceeds ($8.7 billion) to reduce leverage. - While the transaction is supportive of DEI's credit quality, DEI's capital spending plan remains elevated, and the company's business review is still pending, which it expects to complete before year-end. We also revised our assessment of EOGC, Questar, and PSCNC's group status to nonstrategic from core, and revised our assessment of Dominion Energy South Carolina's (DESC) group status to strategically important from core. - We affirmed our ratings on DEI and all its rated subsidiaries, including its '###+' issuer credit rating, '###' issue-level rating...

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