Fitch Affirms NSTAR & Subsidiaries Ratings; Outlook Stable

Business Wire, April 17, 2008

NEW YORK -- Fitch Ratings has affirmed the outstanding ratings of NSTAR and its subsidiaries as shown below. The Rating Outlook for NSTAR and each of its subsidiaries remains Stable.

NSTAR's ratings reflect the stable cash flows and relatively low business risk of its two regulated electric and gas distribution subsidiaries, the constructive regulatory environment in Massachusetts that largely insulates the utilities from commodity price risk, and an overall credit profile that is consistent with the current ratings.

Under the Massachusetts restructuring plan, NSTAR's electric utilities essentially have no commodity price exposure. Electric delivery customers that do not choose an alternative energy supplier receive basic service from NSTAR at market-based rates. NSTAR Gas is also largely protected from changes in commodity costs through the cost of gas adjustment clause (CGA). Each of the utilities also benefit from a regulatory mechanism that fully reconciles pension costs with pension revenue.

NSTAR Electric is NSTAR's largest subsidiary and its primary source of credit strength. NSTAR Electric was formed in January 2007 from the merger of NSTAR's former subsidiaries, which included Boston Edison, Commonwealth Electric Company, Cambridge Electric Light Company and Canal Electric. Under the transaction, shares of Cambridge Electric, Commonwealth Electric and Canal Electric were converted into shares of Boston Edison. As part of this merger, the individual Boston Edison, Commonwealth Electric Company and Cambridge Electric Light Company's basic service rates were blended into rates applicable to the entire NSTAR Electric service territory. The merger was effective as of Jan. 1, 2007, at which time Boston Edison was renamed NSTAR Electric Company. The distribution utility's solid credit metrics are consistent with its Fitch 'AA-' senior unsecured debt rating.

Fitch has affirmed the following ratings:

NSTAR

--Long-term Issuer Default Rating (IDR) at 'A-';

--Short-term IDR at 'F1';

--CP at 'F1';

--Senior unsecured at 'A'.

NSTAR Electric Company

--Long-term IDR at 'A ';

--Short-term IDR at 'F1 ';

--CP at 'F1 ';

--Senior unsecured at 'AA-';

--Preferred Stock at 'A '.

NSTAR Gas

--IDR at 'A-';

--Senior secured at 'A'.

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.