Consistent focus on low-risk electricity and natural gas transmission and distribution operations; Predictable revenues and cash flows from regulated activities, which account for 95% of operating profits; Operating, market, and regulatory diversity; Relatively supportive regulatory environments; and Parent National Grid PLC's proven track record of managing large acquisitions. Parent's high consolidated financial leverage as a result of previous acquisitions; Substantial capital expenditures and dividends that will likely result in negative free cash flows over the medium term; Rate relief needs at affiliates during time of economic weakness; and Exposure to foreign exchange risk and inflation, which add volatility to adjusted credit measures. The ratings on KeySpan Energy Delivery Long Island (KEDLI), a subsidiary of KeySpan Corp., are based on the
