Dominion Energy, Inc.NYSE: D

Fitch Rates Dominion Energy's Junior Sub Notes 'BBB-' on Rating Watch Positive

Jun 9, 2026 at 9:47 AM UTC · Issued by Dominion Energy, Inc.

Watch Dominion Energy explain itDominion Energy, Inc. (D) Q2 2026 Earnings Call · Replay · Jul 31

Fitch Ratings has assigned a 'BBB-' rating to Dominion Energy, Inc.'s (DEI) proposed junior subordinated notes and placed it on Rating Watch Positive (RWP).

Per Fitch's 'Corporate Hybrids Treatment and Notching Criteria,' the junior subordinated notes will receive 50% equity credit. The equity categorization of these notes is supported by their junior subordinate priority and the option to defer interest payments on a cumulative basis for up to 10 years on each occasion.

Proceeds from this issuance will be used for general corporate purposes and to repay short-term debt, including CP.

Fitch rates DEI's Long-Term Issuer Default Rating (IDR) at 'BBB+' with an RWP. Fitch placed DEI's ratings on RWP on May 18, 2026, after the merger announcement with NextEra Inc. (NextEra; A-/Stable). Fitch plans to resolve the RWP following the merger close, at which point DEI's ratings would be equalized with NextEra's because NextEra is expected to guarantee all of DEI's debt.

Key Rating Drivers

Please refer to the press release dated June 3, 2026

Peer Analysis

Please refer to the press release dated June 3, 2026.

Fitch's Key Rating-Case Assumptions

Please refer to the press release dated June 3, 2026

Corporate Rating Tool Inputs and Scores

Please refer to the press release dated June 3, 2026.

RATING SENSITIVITIES

Factors that Could, Individually or Collectively, Lead to Negative Rating Action/Downgrade

If the merger with NextEra is not completed;

In the absence of a merger with NextEra, FFO leverage expected to exceed 5.4x during the offshore wind project permitting and construction phases, followed by 5.0x after beginning service;

A downgrade of VEPCo's IDR to 'BBB+';

Material execution risks with CVOW, such as material cost and schedule delays, significant project costs not deemed recoverable by the VSCC and/or denial of rider recovery for CVOW, and breach of a major CVOW Engineering, Procurement, and Construction (EPC) or supplier contracts.

Factors that Could, Individually or Collectively, Lead to Positive Rating Action/Upgrade

If the merger with NextEra closes;

Without the proposed merger, positive rating action is not likely at present given the large capital investment plan and high consolidated leverage. However, the stand-alone ratings could be upgraded if FFO leverage drops below 4.3x on a sustainable basis.

Liquidity and Debt Structure

Please refer to the press release dated June 3, 2026.

Issuer Profile

DEI's business portfolio consists of two state-regulated utilities, nuclear power generation, contracted renewables, and renewable natural gas facilities.

Summary of Financial Adjustments

Fitch adjusts DEI's debt by assigning 50% equity credit to qualifying junior subordinated debentures, trust preferred and perpetual preferred stock.

Date of Relevant Committee

14 May 2026

REFERENCES FOR SUBSTANTIALLY MATERIAL SOURCE CITED AS KEY DRIVER OF RATING

The principal sources of information used in the analysis are described in the Applicable Criteria listed below. In addition, the following sources of information which are not discussed in the criteria were used:

MACROECONOMIC ASSUMPTIONS AND SECTOR FORECASTS

Click here to access Fitch's latest quarterly Global Corporates Sector Forecasts Monitor data file which aggregates key data points used in our credit analysis. Fitch's macroeconomic forecasts, commodity price assumptions, default rate forecasts, sector key performance indicators and sector-level forecasts are among the data items included.

Climate Vulnerability Signals

Please refer to the press release dated June 3, 2026.

ESG Considerations

The highest level of ESG credit relevance is a score of '3', unless otherwise disclosed in this section. A score of '3' means ESG issues are credit-neutral or have only a minimal credit impact on the entity, either due to their nature or the way in which they are being managed by the entity. Fitch's ESG Relevance Scores are not inputs in the rating process; they are an observation on the relevance and materiality of ESG factors in the rating decision. For more information on Fitch's ESG Relevance Scores, visit https://www.fitchratings.com/topics/esg/products#esg-relevance-scores.

RATING ACTIONS

Entity / Debt

Rating Type

Rating

Rating Action

Dominion Energy, Inc.

junior subordinated

BBB-

New Rating

Page

of 1

VIEW ADDITIONAL RATING DETAILS

Additional information is available on www.fitchratings.com

PARTICIPATION STATUS

The rated entity (and/or its agents) or, in the case of structured finance, one or more of the transaction parties participated in the rating process except that the following issuer(s), if any, did not participate in the rating process, or provide additional information, beyond the issuer's available public disclosure.

APPLICABLE CRITERIA

Corporates Recovery Ratings and Instrument Ratings Criteria (pub. 03 Aug 2024) (including rating assumption sensitivity)

Corporate Hybrids Treatment and Notching Criteria (pub. 08 Apr 2025)

Parent and Subsidiary Linkage Rating Criteria (pub. 28 Jun 2025)

Corporate Rating Criteria (pub. 10 Jan 2026) (including rating assumption sensitivity)

Sector Navigators - Addendum to the Corporate Rating Criteria (pub. 10 Jan 2026)

APPLICABLE MODELS

Numbers in parentheses accompanying applicable model(s) contain hyperlinks to criteria providing description of model(s).

Corporate Monitoring & Forecasting Model (COMFORT Model), v8.2.0 (1)

ADDITIONAL DISCLOSURES

Solicitation Status

Endorsement Policy

ENDORSEMENT STATUS

Dominion Energy, Inc. 	EU Endorsed, UK Endorsed

DISCLAIMER & DISCLOSURES

All Fitch Ratings (Fitch) credit ratings are subject to certain limitations and disclaimers. Please read these limitations and disclaimers by following this link: https://www.fitchratings.com/understandingcreditratings. In addition, the following https://www.fitchratings.com/rating-definitions-document details Fitch's rating definitions for each rating s

Solicitation Status

The ratings above were solicited and assigned or maintained by Fitch at the request of the rated entity/issuer or a related third party. Any exceptions follow below.

Fitch's solicitation status policy can be found at www.fitchratings.com/ethics.

Endorsement Policy

Fitch's international credit ratings produced outside the EU or the UK, as the case may be, are endorsed for use by regulated entities within the EU or the UK, respectively, for regulatory purposes, pursuant to the terms of the EU CRA Regulation or the UK Credit Rating Agencies (Amendment etc.) (EU Exit) Regulations 2019, as the case may be. Fitch's approach to endorsement in the EU and the UK can be found on Fitch's Regulatory Affairs page on Fitch's website. The endorsement status of international credit ratings is provided within the entity summary page for each rated entity and in the transaction detail pages for structured finance transactions on the Fitch website. These disclosures are updated on a daily basis.

Corporate Finance

Utilities and Power

North America

United States

Related Regions

United States

ENTITIES

Dominion Energy, Inc.

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Fitch Affirms 10 North American Utilities, Power & Gas Holding Companies' Ratings

Fitch Rates Dominion Energy's Junior Sub Notes 'BBB-'

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Fitch Affirms Dominion Energy's and Subsidiaries' IDRs

Fitch Rates Dominion Energy's Senior Notes 'BBB+'

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