Research Update: Dominion Energy Inc. Outlook Revised To Stable On Expected SCANA Aquisition; Ratings Affirmed

The Public Service Commission of South Carolina approved Dominion Energy Inc.'s acquisition of South Carolina Electric&Gas Co., and we expect that Dominion will close on its all-stock acquisition of SCANA Corp. in the very near term. In addition, Dominion previously entered into a definitive agreement to acquire Dominion Energy Midstream, which we also expect will soon be completed. On Dec. 27, 2018, S&P Global Ratings affirmed its ratings on Dominion and subsidiaries Virginia Electric&Power Co. (VEPCO), Dominion Energy Gas Holdings LLC, and Questar Gas Co., including the 'BBB+' issuer credit ratings, and revised the outlooks to stable from negative. At the same time, we raised the issuer credit and unsecured debt issue rating on subsidiary Dominion

...+ The Public Service Commission of South Carolina approved Dominion Energy Inc.'s acquisition of South Carolina Electric & Gas Co., and we expect that Dominion will close on its all-stock acquisition of SCANA Corp. in the very near term. In addition, Dominion previously entered into a definitive agreement to acquire Dominion Energy Midstream, which we also expect will soon be completed. + On Dec. 27, 2018, S&P Global Ratings affirmed its ratings on Dominion and subsidiaries Virginia Electric & Power Co. (VEPCO), Dominion Energy Gas Holdings LLC, and Questar Gas Co., including the '###+' issuer credit ratings, and revised the outlooks to stable from negative. + At the same time, we raised the issuer credit and unsecured debt issue rating on subsidiary Dominion Energy Questar Pipeline LLC (DEQP) to '###+' from '###'. The outlook is stable. + The stable outlook reflects our expectations that Dominion's lower-risk utility businesses will increase to about 75% of consolidated EBITDA following...

Research Update