Moody's views Constellation positively

Moody's Investors Service said it changed the outlook for Constellation Energy Generation, LLC and its off-balance sheet liquidity facility Fells Point Funding Trust to positive from stable.

"Constellation Energy's positive outlook reflects the expected improvement of its CFO pre-WC to debt ratio to the 35% range in 2023, up from 27% in 2022, and the revenue stability provided by the nuclear production tax credits (PTCs) included in the Inflation Reduction Act of 2022," said Toby Shea, a Moody’s vice president and senior credit officer.

"Importantly, the company has also committed to managing its debt level as necessary to sustain a CFO pre-WC to debt ratio of 35% going forward," added Shea.

The agency also affirmed Constellation’s ratings, including its Baa2 senior unsecured and issuer ratings and the Baa2 rating on pre-capitalized trust securities (P-Caps) issued by Fells Point.

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