Low operating risk regulated natural gas distribution operations Historically effective management of regulatory risk Predominately residential and commercial customer base limiting susceptibility to economic cyclicality Accelerating capital spending due to aging infrastructure, storm hardening, and gas conversions Stand-alone financial measures that currently fall within the "intermediate" financial risk profile category The negative outlook on KeySpan Gas East reflects the potential for lower ratings by up to one notch absent indications that the company will be able to maintain its historical levels of financial performance supported by its ability to earn at levels consistently above its authorized returns. Under our base-case scenario, we expect KeySpan Gas East will achieve funds from operations (FFO) to debt of 17% to 18% with debt
