The ratings on Connecticut Light&Power Co. (CL&P) are on CreditWatch with positive implications as a result of parent company's, Northeast Utilities (NU), plan to merge with NSTAR. The ratings on NU are also on CreditWatch with positive implications. The positive CreditWatch listing on NU reflects that the company's credit quality will benefit from the merger with the higher rated NSTAR. Because NSTAR is also focused on electric and gas transmission and distribution operations, we expect the combined entity to preserve the excellent consolidated business risk profile. In addition, the merger will provide regulatory diversity, with the combined entity generating about 70% of operating income from Massachusetts, Connecticut, and New Hampshire while the balance will be FERC-regulated. Finally, the
