Standard&Poor's Ratings Services' ratings on Connecticut Light&Power Co. (CL&P) are based on the credit profile of its parent, Northeast Utilities (NU). NU's business risk profile is "excellent" (as our criteria define the term) and reflects primarily the low-operating-risk nature of its regulated utility subsidiaries and the increasing contributions of its transmission investments. Unregulated operations are not material to the consolidated credit profile, and the company has no plans to expand them. The ratings on CL&P and NU are on CreditWatch with positive implications as a result of NU's plan to merge with NSTAR. The CreditWatch listing reflects the benefit to NU's credit quality that will result from the merger with higher-rated NSTAR. Because NSTAR is also
