Fitch puts Exelon, Exelon Generation on Watch

Fitch Ratings said it placed the ratings of Exelon Corp. and Exelon Generation Co. LLC (ExGen) on rating watch negative following Exelon’s announced plans to spin-off ExGen to its shareholders.

The rating watch includes Exelon’s BBB+ current long-term issuer default rating and ExGen’s BBB current long-term IDR. Fitch also affirmed the long-term IDRs of Exelon’s regulated entities. The outlook for the regulated entities is stable.

“Regarding Exelon’s negative watch, while the separation of the unregulated ExGen results in improved business risk for Exelon, Fitch does not expect Exelon will offset the loss of ExGen cashflow in a manner that will be supportive of the company’s current BBB+ long-term IDR,” the agency said in a press release.

Fitch said it previously forecasted ExGen would contribute about $1 billion annually in dividends to Exelon.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.