The ratings on KeySpan Energy Delivery Long Island (KED Long Island) reflect the consolidated credit profile of its parent, KeySpan Corp., which is determined in conjunction with affiliates Keyspan Energy Delivery New York, Keyspan Generation LLC, Colonial Gas Co., and Boston Gas Co. The long-term corporate credit rating on KeySpan is 'A' reflecting an above average business profile and a modest financial profile. KED Long Island merits its stronger 'A+' rating because of its more healthy financial profile along with financial restrictions that allow KED Long Island bondholders some protection from KeySpan's nonregulated businesses. KeySpan derives its operating income from the following business segments: 55% from regulated gas operations that serve a residential, commercial, and industrial customer base throughout New
