KeySpan Gas East Corp.

This being said, additional recent events regarding other utilities that operate in New York State, related to storm responses and power outages, could indicate a potentially higher degree of political intervention in the state's regulatory construct. If we reassess downward our assessment of the regulatory framework in the state, it could potentially affect our analysis of all of the state's regulated utilities that we rate. The negative outlook on KEDLI reflects the outlook on National Grid. The negative outlook on National Grid reflects the risk that--amid the pandemic and because of tougher operating conditions and tighter regulations in the next regulatory period--National Grid may not be able to post FFO to debt above 13% on a sustainable basis, which we

...Our assessment of KeySpan Gas East Corp. (KEDLI) as a core subsidiary of National Grid PLC (National Grid) underpins the rating. Because KEDLI is a core subsidiary of National Grid, our issuer credit rating on KEDLI benefits from a one-notch uplift, bringing it in line with our group credit profile on National Grid. We assess KEDLI's business risk profile as excellent, albeit at a lower standing within the business risk profile category. Although KEDLI owns and operates a lower-risk gas distribution system in a generally constructive regulatory framework, we view it as somewhat less effective at managing the political and regulatory risks in New York compared with its peers in the state, as largely informed by the uncertainties presented by the political focus relating to National Grid's management of gas supply issues for KEDLI's service territory. Overall, we use a negative comparative rating analysis modifier to reflect our view that the company's business risk profile is at the lower...

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