Standard&Poor's Ratings Services bases its rating on Charlotte, N.C.-based utility holding company Duke Energy Corp. on the consolidated credit profile of its operating subsidiaries that results in an "excellent" business risk and a "significant" financial risk profile under our criteria. Our assessment of Duke Energy's business risk profile as "excellent" reflects the preponderance of regulated utility operations that provide 80%-85% of operating income; a large customer base; regulatory and operating diversity with operations in six states whose regulatory environments we view as generally constructive and supportive of credit quality; and a strong operating record for owned generation capacity with high levels of availability and capacity utilization. At the same time, these strengths are offset by a large capital
