Fitch lowers Potomac Electric

Fitch Ratings said it downgraded the issuer default rating of Potomac Electric Power Co. (Pepco) to BBB from BBB+ and revised the outlook to stable from negative.

Fitch also said it affirmed the BBB issuer default ratings of Pepco Holdings, Inc. and Atlantic City Electric Co. and the BBB+ issuer default rating of Delmarva Power and Light Co.

Fitch also downgraded the short-term issuer default rating of Pepco Holdings to F3 from F2 and affirmed the short-term ratings of Pepco, Delmarva and Atlantic City Electric at F2.

Pepco's senior unsecured notes rating also was affirmed at BBB, along with Delmarva's secured debt at A, senior unsecured notes at A- and short-term issuer default rating and commercial-paper rating at F2.

The agency also affirmed Atlantic City Electric's secured debt at A-, senior unsecured notes rating at BBB+ and short-term issuer default rating and commercial-paper rating at F2.

Potomac Electric's short-term issuer default rating and commercial-paper ratings also were affirmed at F2.

Fitch also downgraded Potomac Electric's secured debt to A- from A and senior unsecured notes to BBB+ from A- and Pepco's short-term issuer default rating and commercial-paper rating to F3 from F2.

The ratings are supported by the predictable cash flows generated by the group, Fitch said.

The group is in the midst of a significant capital expenditure plan of about $5.7 billion from 2013 through 2017 that will require ongoing rate support, the agency said.

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