The ratings for KeySpan Energy Delivery Long Island (KED Long Island) reflect the operating company's relationship with parent KeySpan Corp., which as a consolidated entity has an above-average business profile and a modest financial profile, along with financial restrictions that allow KED Long Island bondholders some measure of protection from KeySpan's nonregulated businesses. The rating for KeySpan is 'A' primarily because of the relatively low risk and predominantly free flow of funds among the KeySpan family. KED Long Island merits its stronger 'A+' rating because of its more healthy financial profile and the aforementioned financial protections. As a consolidated entity, KeySpan derives its EBIT from the following business segments: 55% from regulated gas operations that serve a residential, commercial, and
