Fitch affirms Exelon debt ratings |
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Thu, 18 Jan 2007 22:32
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NEW YORK (AFX) - Fitch Ratings on Thursday affirmed its debt ratings on Exelon Corp. and its subsidiaries, utility companies Commonwealth Edison and PECO Energy.The agency said it affirmed its 'BBB+' issuer default ratings on Exelon and its stable outlook for the company and its PECO and Exelon Generation subsidiaries. The ratings for Commonwealth Edison remain on 'Rating Watch Negative,' the agency said.Exelon's ratings reflect its 'strong consolidated financial profile,' the agency said. The affirmation also takes into account the uncertain regulatory environment in Illinois, Fitch said, where the state legislature could pass legislation that would freeze ComEd's electric utility rates at levels below its generation procurement costs.The legislative threat is the primary reason that ComEd's debt is on 'Rating Watch Negative,' the agency said. A rate freeze 'would have a devastating effect on ComEd's financial health,' the agency said, and resolving the 'Rating Watch Negative' will depend on the legislative outcome and a separate issue involving the refinancing of $680 million in bonds.A rate freeze in Illinois, however, would have a limited impact on Exelon's overall credit, Fitch said, because ComEd contributes a modest proportion of Exelon's earnings and cash flow.Shares of Exelon rose 17 cents to $60.02 in late afternoon trading on the New York Stock Exchange.Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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