The ratings on Dominion Resources Inc. and its Consolidated Natural Gas Co. (CNG) affiliate reflect a consolidated credit assessment methodology, resulting in the same corporate credit rating (risk of default) for Dominion Resources and CNG. The higher corporate credit rating assigned to Virginia Electric&Power Co. (VP; A/Stable/A-1), another Dominion subsidiary, is supported by the utility's adequate credit protection measures on a stand-alone basis, combined with statutory insulation that allows Standard&Poor's to view dividend payments to the parent as discretionary. Dominion Resources' senior debt is not notched down for structural subordination, given the relatively small amount of debt at CNG, combined with an assumption of insulation at VP that gives the parent debtholders access to equity value
