Northeast Utilities

--IDR at 'BBB';

--Senior unsecured debt at 'BBB'.

The Connecticut Light & Power Company (CL&P)

--IDR at 'BBB';

--First and refunding mortgage debt at 'A-';

--Senior unsecured and second-mortgage pollution control bonds at 'BBB+';

--Preferred stock at 'BBB'.

Public Service Co. of New Hampshire (PSNH)

--IDR at 'BBB';

--Senior secured debt at 'BBB+'.

Western Massachusetts Electric Company (WMECO)

--IDR at 'BBB';

--Senior unsecured bonds at 'BBB+'.

The Rating Outlook for all entities remains Stable.

NU's ratings and Outlook reflect the relatively stable cash flows of its regulated utility subsidiaries, low commodity price risk, adequate liquidity, constructive regulation in its multi-jurisdictional service territory, and management's relatively low-risk business strategy of growing transmission and distribution (T&D) infrastructure through important reliability projects. Neither CL&P nor WMECO bear any commodity price risk. Supply obligations are secured through full requirements contracts with third party suppliers, and the costs are passed through to rate payers. PSNH, which still owns approximately 1,150 MW of generation, recovers purchased power and fuel costs through its energy service and stranded cost recovery charges. The ratings of NU and its subsidiaries also consider the sizeable capital expenditure plan.

Capital expenditures at NU's regulated utilities for upgrading and expanding T&D systems are expected to total more than $6.5 billion from 2009 through 2013 of which an estimated $2.5 billion (or 38%) is at CL&P, $2.6 billion is at PSNH (40%), $1 billion is at WMECO (15.5%) and $500 million is at Yankee Gas (7.6%). The high rate of new investment in electric transmission facilities entails some execution risk and external funding needs, but over the longer-term it will result in a higher proportion of operating cash flows from FERC jurisdiction, which generally allows higher investment returns and is considered by Fitch to be very constructive.

NU anticipates funding its system expansion primarily through a mix of internally generated cash, future debt issuances, and common equity.