The ratings on Denmark-based DONG A/S are based on the assumption that acquisitions of Danish electric utilities will be completed. This will result in an entrenched dominant incumbent energy market position integrating gas, electricity, and heating operations, access to competitive gas supplies, and significant monopoly operations in gas and electricity. Negative rating factors include competitive exposure in the electricity generation and gas supply business, operating risks of developing equity gas supplies, and significant exposure to the volatile oil and gas exploration and production business. The financial risk profile resulting from acquisitions is commensurate with the rating. No support from the 100% owner, the Kingdom of Denmark, is factored into the ratings. The company is considered a commercial entity for which
