U.S. regulated utility company DTE Energy Co. (DTE) has entered into an agreement to purchase for $1.3 billion various Appalachian midstream natural gas assets. We are affirming the ratings on DTE and its subsidiaries DTE Electric Co. (DTEE) and DTE Gas Co. (DTEG), including the 'BBB+' issuer credit rating (ICR) on each entity. The rating outlook remains stable. We would expect to assign a 'BBB-' rating to the mandatorily convertible equity units that DTE plans to issue as part of the acquisition. The stable rating outlook on DTEE and DTEG reflect our expectation that management will continue to focus on core utility operations, not disproportionately expand non-utility operations, and maintain current credit measures. On Sept. 27, 2016, S&P Global Ratings
