S&P flips Exelon view to positive

S&P said it revised the outlook for Exelon Corp. to positive from negative and affirmed its ratings, including the BBB+ issuer credit rating and the BBB senior unsecured debt rating. Concurrently, the agency revised the outlooks for subsidiaries Commonwealth Edison Co. and PECO Energy to positive and the outlook for Pepco Holdings LLC to stable from negative.

The outlook revision for Exelon follows the New York Public Service Commission approving the spinoff of subsidiary Exelon Generation Co. LLC giving the company the regulatory approvals it needed for the transaction, S&P said.

“Exelon without ExGen reflects a large, lower-risk, fully regulated, transmission and distribution utility with more than 10 million customers operating under seven regulatory jurisdictions. Following the separation, we expect to account for the significantly lower business risk by revising upward Exelon's business risk profile to excellent from strong,” the agency said in a press release.

“We assess PECO and ComEd as core subsidiaries of Exelon. Therefore, the ICRs and outlooks on these subsidiaries mirror our ICR and outlook on Exelon,” S&P added. For ComEd, the agency said the outlook also reflects increasing confidence that ComEd will continue to meet the terms of its three-year deferred prosecution agreement without further violation.

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