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British Power Generator Changes Hands
Standard & Poors, July 1998
Abstract
Dominion Resources Inc.'s sale of East Midlands Electricity PLC to PowerGen PLC should help Dominion with future expansion, according to Standard & Poor's director Mary Ellen Olson. Dominion agreed to sell East Midlands to PowerGen for $3.2 billion. East Midlands, a Nottingham-based regional electric distribution company, was purchased by Dominion in the first quarter of 1997 for about $2.2 billion. The sale is expected to close in July 1998. The sale of East Midlands is expected to result in an after-tax net gain of $216 million with a cash benefit of about $650 million. 'While these sums are substantial, and will have a positive impact on Dominion's financial profile, such improvement is expected to be short-lived,' she said. The company...
Companies mentioned in this report are: Dominion Resources Inc.,Virginia Electric & Power Co.,Western Power Distribution (East Midlands) PLC,E.ON U.K. PLC,Powergen (East Midlands) Investments
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
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