The credit ratings of Connecticut Light & Power and Yankee Gas will improve if state regulators approve the proposed merger of their parent company Northeast Utilities with Boston-based NStar, according to the two major rating firms.

With better credit ratings, the cost of borrowing for the Berlin-based electric and natural gas utilities will decrease, particularly for major projects. These savings will depress rates and ultimately benefit customers.

“We feel very strongly that will be the case, but the final decision will be made by the rating agencies,” said David McHale, NU chief financial officer. “I am anticipating that, but it is not a foregone conclusion.”

NU and NStar began presenting their case for their $ 4.7 billion merger on Feb. 14 to the Connecticut Public Utilities Regulatory Authority, discussing why combining the Hartford and Boston utility parents will provide a net benefit to ratepayers.

The deal will create the largest New England utility parent company with 3.5 million customers in Connecticut, Massachusetts and New Hampshire spread over six electric and natural gas subsidiaries.

The PURA discussion kicked into high gear Feb. 15 with announced settlements with the Massachusetts governor and a……….. continues on Hartford Business.