Correction - Fitch Affirms IDRs of Energy East & Subsidiaries; Downgrades SCG.

NEW YORK -- (Correction: This release replaces the version released earlier today and corrects Iberdrola, S.A.'s rating to 'A+', not 'A'.)

Fitch Ratings has affirmed the Issuer Default Rating (IDR) of Energy East Corporation (EAS) and subsidiaries New York State Electric and Gas Corporation (NYSEG), Central Maine Power Company (CMP), Connecticut Natural Gas Corporation (CNG), and Berkshire Gas Company (BGC), and downgraded the ratings of Southern Connecticut Gas Company (SCG) as shown below. Fitch has assigned a Negative Rating Outlook to NYSEG. The Rating Outlooks for EAS, CMP, CNG, SCG and BGC are Stable.

Fitch has affirmed the following ratings:

Energy East

--Long-Term IDR at 'BBB'.

The Outlook is Stable.

New York State Electric & Gas Company

--Long-term IDR at 'BBB';

--Short-term IDR at 'F2';

--Senior unsecured debt at 'BBB+';

--Preferred stock at 'BBB';

--Commercial Paper at 'F2'.

The Outlook is Negative.

Central Maine Power Company

--IDR at 'BBB+';

--Senior unsecured debt at 'A-';

--Preferred stock at 'BBB+'.

The Outlook is Stable.

Connecticut Natural Gas

--IDR at 'BBB+';

--Senior unsecured debt at 'A-'.

The Outlook is Stable.

Berkshire Gas Company

--IDR at 'BBB+'.

The Outlook is Stable.

Fitch has downgraded the following ratings:

Southern Connecticut Gas

--IDR to 'BBB' from 'BBB+';

--Senior secured debt to 'A-' from 'A'.

The Outlook is Stable.

Fitch has upgraded the ratings of the following securities assumed by Iberdrola, S.A. (Iberdrola):

--8.05% senior unsecured notes due Nov. 15, 2010 to 'A+' from 'BBB';

--6.75% senior unsecured notes due June 15, 2012 to 'A+' from 'BBB';

--6.75% senior unsecured notes due Sept. 15, 2033 to 'A+' from 'BBB';

--6.75% senior unsecured notes due July 15, 2036 to 'A+' from 'BBB'.

The affirmation of EAS's IDR considers the favorable impact of its ownership by a financially strong parent, Iberdrola, which has assumed EAS' long-term debt and not taken dividends since acquiring EAS in September 2008. Consolidated credit metrics have weakened over the past several years due to a combination of delayed rate filings by its New York subsidiaries, a rate reduction at CMP and the repurchase of auction-rate securities by NYSEG and Rochester Gas & Electric Co. (RG&E), which increased short-term borrowings. Each of EAS' three largest utility subsidiaries are at or near their borrowing limits under a shared revolving credit agreement. Going forward, capital expenditure commitments and rate credits required by the New York Public Service Commission (PSC) in its approval of Iberdraloa's acquisition of EAS will continue to exert pressure on credit quality measures. The merger agreement also precludes the two New York utilities, NYSEG and RG&E, from filing new rate cases before October 2009.

To soften the liquidity constraints, Iberdrola has not extracted dividends from EAS since the acquisition and provided further credit support by assuming EAS' long-term debt in exchange for an inter-company loan between EAS and Scottish Power equal to $1.05 billion or approximately 80% of the $1.3 billion of transferred debt, with the remaining $250 million considered an equity contribution. The debt assumed and guaranteed by Iberdrola is upgraded by Fitch to 'A+' from 'BBB'. Maintenance of EAS' IDR will largely depend on the receipt of adequate regulatory support for its two largest subsidiaries, NYSEG and RG&E, as well as continued liquidity support from parent, Iberdrola.

NYSEG's Negative Outlook primarily reflects the company's tight liquidity position and ongoing pressure on credit quality from the mandated capital spending in 2009 and 2010, which will require regulatory support to maintain the current ratings. Favorably, NYSEG's credit quality benefits from limited commodity exposure and low business risk of its regulated transmission and distribution operations. Commodity exposure will be virtually eliminated in 2010 with the termination of the fixed pricing option for standard offer service.

NYSEG's short-term borrowings increased substantially over the past 12 months due in large part to the temporary purchase of $93.9 million of its outstanding auction-rate tax-exempt securities. Management recently increased the company's borrowing limit under its credit facility from $160 million to $190 million, of which NYSEG has $60 million of remaining capacity to date. Management plans to restructure and remarket the auction-rate securities in the second half of 2009. In addition, the company currently has the authority to issue $157 million of long-term debt.

NYSEG is required, as a condition of the Iberdrola acquisition, to meet minimum capital expenditures averaging $140 million per year in 2009 and 2010 for the electric system and $20 million for the gas system. In January 2009, the company, claiming financial hardship in meeting future capital spending obligations, filed for a $178 million delivery rate increase. On April 7, 2009 the New York State Public Service Commission(NYPSC) dismissed the rate case on the grounds that Iberdrola and ultimately NYSEG, agreed not to seek a rate increase until October 2009. Fitch expects the company to submit a new rate filing in October 2009.

The downgrade of SCG's ratings results from a deterioration in credit metrics to levels more consistent with Fitch's 'BBB' IDR. In June 2008, the Connecticut Department of Public Utility Control (DPUC) initiated an over earnings investigation and issued a decision ordering SCG to implement a $15 million rate decrease effective Oct. 24, 2008 and to file proforma adjustments for the purpose of a rate credit for the period beginning Oct. 24, 2008, through June 30, 2009. In addition, SCG issued $50 million in long-term debt in 2008 that raised its borrowing costs. The delivery rate reduction coupled with the increased interest costs weakened credit metrics for the year ending 2008. Fund from Operations (FFO) to interest declined to 3.2 times (x) from 3.8x at year-end (YE) 2007 and debt to EBITDA increased to 4.5x at YE 2008 from 3.5x at YE 2007. On Jan. 20, 2009, SCG filed an application for a delivery rate increase of $50.1 million (15.2%) and expects new rates to be effective by July 1, 2009.

CMP's ratings are based on the low operating risk of the company's transmission and distribution system, relatively supportive regulatory environment, lack of commodity exposure and diverse service territory. The rating also considers the company's current liquidity constraints. While projected capital spending is sizeable, it is primarily for expansion of the transmission network, which benefits from constructive Federal Regulatory Commission (FERC) policies, including Construction Work in Progress (CWIP) in rate base and attractive allowed returns, which reduce construction stress. The Outlook is Stable.

CNG's ratings reflect robust financial metrics that are able to withstand the recent rate decrease and remain supportive of the current credit rating. The Outlook is Stable. CNG is a pure gas distribution company that benefits from full recovery of purchased gas costs, adjusted monthly to reflect the actual cost of gas, and reviewed semi-annually by the DPUC. In June 2008, CNG filed its monthly financial report with the DPUC showing that it exceeded its allowed return on equity of 10.1% by more than 100 basis points for the sixth consecutive monthly period. As a result, the DPUC initiated an over earnings investigation and ordered CNG to decrease rates by $15 million effective Aug. 6, 2008 and to file a rate case by Jan. 1, 2009. On Jan. 16, 2009, CNG filed an application for a delivery rate increase of $16.2 million (4.4%). The company expects a decision and new rates to be effective by July 1, 2009.

BGC's ratings reflect the stable cash flows from the company's regulated natural gas distribution business and the recovery of commodity costs through a cost of gas adjustment (CGA), which is filed semi-annually, low debt levels and a modest capital expenditure program. The company is currently operating under a 10-year rate plan that extends through Jan. 31, 2012. The plan permits annual inflation adjustments with no return on equity (ROE) limits. Recovery of unexpected cost increases during the rate plan and the stagnant service area economy are the primary credit concerns. The Outlook is Stable.

EAS, which was recently acquired by Iberdrola, is a utility holding company with six operating subsidiaries, primarily engaged in the delivery of electricity and natural gas. The regulated electricity operations are located in upstate New York and Maine. Its regulated gas operations are in upstate New York, Connecticut, Maine and Massachusetts. On a consolidated basis, the company serves 1.8 million electricity customers and 900,000 natural gas customers. Its regulated utility subsidiaries include NYSEG, RG&E, CMP, SCG, CNG and BGC.

Iberdrola is one of the world's largest energy companies and is a leading owner and operator of renewable energy facilities, having an installed capacity of over 7,000 megawatts (MW) of wind generation (the largest wind portfolio in the world) and almost 10,000 MW of hydro generation. In the United States, Iberdrola jointly owns and operates the largest wind facility on the East Coast - Maple Ridge in upstate New York - and has over 20,000 MW of renewable generation under development in the United States.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.