Fitch lifts Commonwealth Edison

Fitch Ratings said it has taken a number of actions for the ratings and outlooks of Exelon Corp. and its subsidiaries. The ratings actions include the following:

• Affirmed the BBB+ issuer default ratings and instrument ratings of Exelon Corp. and Exelon Generation Co., LLC and revised the outlook to negative from stable;

• Upgraded the issuer default rating of Commonwealth Edison Co. to BBB from BBB- and revised the outlook to stable from positive. ComEd's instrument ratings were also upgraded one-notch; and

• Affirmed the BBB+ issuer default rating and instrument ratings of PECO Energy Co. with a stable outlook.

The negative outlooks primarily reflect the continued down trend in gross margin and credit protection measures due to the on-going weakness in forward power and natural gas prices, soft power demand and aggressive competition in the retail supply business, Fitch said.

The upgrade of ComEd reflects the improvement in credit metrics due in large measure to tariff increases over the past several years and the greater predictability of earnings and cash flow due to the implementation of a formula rate plan in Illinois, according to the agency.

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