The ratings on diversified energy company Dominion Resources Inc. reflect the cash flow stability and supportive regulatory environment for its utilities, its much smaller upstream and midstream natural gas operations, and a significant portfolio of unregulated power generation assets. Dominion faces commodity price and operational risks in its unregulated operations that require extensive risk management. The company's business risk profile is excellent and it carries a significant level of financial risk. Dominion's sales of its exploration and production assets, the reregulation in Virginia of its main utility, Virginia Electric&Power Co. (VEPCO), and the company's plans to invest predominantly in its regulated segments all point to its improved business risk position. The company has been using the large asset
