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 certain asset sales and related debt reduction, which would improve credit protection measures. The recent outlook revision, however, reflects the company's increased business and financial risk relative to levels that Standard&Poor's expected the company to achieve by time of outlook revision. Specific factors that elevate KeySpan's credit risk include: Continued exposure to gas exploration and production activities through a 56% ownership interest in The
