The rating actions on Dominion Resources Inc. and subsidiaries Consolidated Natural Gas Co. (CNG) and Virginia Electric&Power Co., in addition to Louis Dreyfus Natural Gas Corp. followed today's announcement by Dominion that it will acquire Louis Dreyfus Natural Gas for $2.295 billion, including the assumption of $505 million of debt. The acquisition will be financed initially with a $1.1 billion bridge loan to be taken out with proceeds from permanent debt and trust preferreds. The proposed capital structure for the transaction is 52% debt, 9% hybrids, and 39% equity. Upon completion of the merger, Standard&Poor's expects to equalize Louis Dreyfus's debt ratings with those of Dominion. The acquisition is expected to improve CNG's business position by
