The ratings for KeySpan Energy Delivery Long Island (KED Long Island) reflect the company's well-above-average business profile and strong financial condition, in conjunction with its relationship to parent company KeySpan Corp. Standard&Poor's rating expectations for the consolidated entity are based in part on KeySpan's stated intention to strengthen its financial profile via asset sales and related debt reduction, which will improve credit protection measures. Such assets include the company's Canadian gas processing business and its 67% equity interest in exploration and production company The Houston Exploration Co. Although the company generates steady and predictable cash flows with its regulated subsidiaries, KeySpan's consolidated financial measures remain below levels suitable for its current rating. If KeySpan fails to reduce its
