Moody's reviews Exelon, may up NRG

Moody's Investors Service said it placed Exelon Corp. (Baa1 senior unsecured rating) and subsidiaries Exelon Generation Co. (A3 senior unsecured rating) and PECO Energy Co. (A3 issuer rating) under review for downgrade, and it placed ratings of NRG Energy, Inc. (Ba3 corporate family rating) under review for upgrade.

The actions follow Exelon's filing with the Securities and Exchange Commission noting its exchange offer for the stock of NRG.

"While contingencies remain, today's S-4 filing by Exelon commencing an exchange offer of 0.485 Exelon shares for each NRG share increases the probability of the $6.2 billion acquisition of NRG being completed, which has the potential to substantially alter the current credit profile of Exelon, ExGen and NRG," A.J. Sabatelle, vice president at Moody's said in a statement.

"While uncertainties exist concerning the final legal structure, the terms of any related required financing, and the potential issues that may surface from Exelon commencing a hostile takeover, Moody's believes that a multi-notch rating change is possible for Exelon, ExGen and NRG," Sabatelle added.

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