Dominion Energy Inc. And Subsidiaries Outlook Revised To Negative On Planned Merger With SCANA Corp.

Dominion Energy Inc. (DEI) announced an all-stock merger with SCANA Corp. (BBB/Watch Neg/A-2) for about $14.6 billion, including assumed debt. Under the proposed merger, DEI will refund about $1,000 to the average South Carolina Electric&Gas (SCE&G) residential electric customer. Furthermore, the merger agreement is contingent upon approval of a comprehensive regulatory solution to the issues surrounding the abandoned nuclear development project. We are affirming the ratings on DEI and all of its subsidiaries, including our 'BBB+' issuer credit rating on DEI. We are revising the outlook to negative from stable. The negative outlook reflects the company's weak financial measures for the current rating and our expectation that the financial measures will remain at or below the downgrade threshold

...+ Dominion Energy Inc. (DEI) announced an all-stock merger with SCANA Corp. (###/Watch Neg/A-2) for about $14.6 billion, including assumed debt. + Under the proposed merger, DEI will refund about $1,000 to the average South Carolina Electric & Gas (SCE&G) residential electric customer. Furthermore, the merger agreement is contingent upon approval of a comprehensive regulatory solution to the issues surrounding the abandoned nuclear development project. + We are affirming the ratings on DEI and all of its subsidiaries, including our '###+' issuer credit rating on DEI. We are revising the outlook to negative from stable. + The negative outlook reflects the company's weak financial measures for the current rating and our expectation that the financial measures will remain at or below the downgrade threshold over the forecast period. NEW YORK (S&P Global Ratings) Jan. 3, 2018--S&P Global Ratings today revised its rating outlooks on Dominion Energy Inc. (DEI) and subsidiaries Virginia Electric...

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