The ratings on diversified energy company Dominion Resources Inc. reflect the cash flow stability and supportive regulatory environment for its utilities, combined with much smaller upstream and midstream natural gas operations and a portfolio of unregulated power generation and natural gas-related assets. Dominion faces commodity price risk and operational risk in its unregulated operations that requires the management's careful attention. The company's business risk profile is 'excellent', albeit in the low end of the range, and it carries an 'intermediate' level of financial risk. Dominion's 2007 sale of a sizable portion of its exploration and production assets, the re-regulation in Virginia of its main utility, Virginia Electric and Power Co. (VEPCO), and the company's plans to invest predominantly in its
