Fitch rates PECO bonds A

Fitch Ratings said it assigned an A rating to the $300 million 5.6% first and refunding mortgage bonds due 2013 issued by PECO Energy Co.

The outlook is stable.

Proceeds will be used to reduce short-term debt.

The agency said PECO's ratings are consistent with the company's sound credit profile, moderate capital expenditure forecast and the reduction in business risk resulting from a full requirements electricity supply contract with affiliate Exelon Generation Co., LLC that insulates the company from commodity price exposure.

Fitch said credit ratios are expected to weaken somewhat through 2009 - due in large measure to rising financing costs, a mismatch between the collection of competitive transition charges and the amortization of utility tariff bonds and lack of electric service rate increases - but remain supportive of the existing ratings.

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