The ratings for DTE Energy Co., the Detroit, Michigan-based diversified energy holding company, are a function of its regulated utility subsidiaries, Detroit Edison Co. and Michigan Consolidated Gas Co., and a growing portfolio of higher-risk, nonregulated activities. DTE Energy's merger with MCN Energy Group Inc. in 2001 enhanced the company's business risk profile by adding a low-risk gas distribution company that provides Midwest regional growth potential through the convergence of electric and gas businesses. However, the company's debt load in the near term has pressured credit protection measures. Still, the potential for reductions in debt leverage through strategic asset sales, annual cost synergies of about $100 million pretax, and an expected increased cash flow are positive attributes. Importantly, the current
