The ratings on Duke Energy Corp. reflect the consolidated credit assessment of the company's regulated U.S. electric utility operations, Duke Power Co., and the regulated and nonregulated operations conducted by Duke Capital LLC. Duke Capital owns regulated natural gas transmission and distribution (T&D) operations in the U.S. and Canada, nonregulated merchant-generation operations in the U.S. and in Latin America, asset-based trading and marketing operations primarily in the U.S., and other nonregulated operations, mainly real estate development. Duke Energy is in the process of acquiring Cinergy Corp. in a transaction that is expected to close in second-quarter 2006. Duke Energy's '7' (weak) consolidated business risk profile (utility business profiles are categorized from '1' (excellent) to '10' (vulnerable)) is supported by the
