Very supportive regulatory environment; Favorable service territory, with low market penetration providing growth opportunities; Low operating risk gas transmission and distribution operations; Above-average competitive position; and Strong cash flow. Competition from other fuel sources; and Higher risk associated with parent KeySpan's nonregulated businesses. The ratings on KeySpan Energy Delivery Long Island (KED Long Island) are on CreditWatch with negative implications as a result of parent KeySpan Corp.'s agreement to be acquired by National Grid PLC (A/Watch Neg/A-1). If the transaction is funded on an all-cash basis, there is a strong likelihood that the ratings on all companies will be lowered by one notch. The acquisition of KeySpan would likely lead to a modest deterioration in National Grid's business profile. The
