KeySpan Gas East Corp.

Overview Key strengths Key risks Largely predictable cash flows from the essential nature of the company?s gas-distribution utility operations. A lack of regulatory diversity makes the company dependent on the New York State Public Service Commission (NYSPSC) to sustain its credit quality. Large long-term investments to replace aging infrastructure support lower-risk rate base growth. Long-term customer growth in question given New York state?s environmental agenda. Mostly residential customer base of about 600,000 customers that provides cash flow stability. Aging pipe materials increase the company?s operating risk. Forecast negative discretionary cash flow we assume will lead to incremental debt financing. Because of this, our issuer credit rating on KEDLI is in line with our group credit profile on NGNA. This reflects

...We consider KeySpan Gas East Corp. (KEDLI) a core subsidiary of National Grid North America Inc. (NGNA). Because of this, our issuer credit rating on KEDLI is in line with our group credit profile on NGNA. We view KEDLI's recent rate case as supportive of credit quality. This reflects a recent multiyear rate case order received from the NYSPSC in August 2024. Specifically, the final order provides for revenue increases of $147.1 million, $163.1 million, and $180.4 million effective April...

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