Moody’s revises ComEd view to negative

Moody's Investors Service said it changed its outlook on Commonwealth Edison Co. (ComEd) to negative from stable and affirmed ComEd's A3 senior unsecured bank credit facility rating and A1 first mortgage bond ratings,

"The Illinois Commerce Commission (ICC) issued an unfavorable order on ComEd's first-ever rate case under the multi-year plan (MYP) regime, setting an authorized return on equity (ROE) well below the industry average and rejecting the company's capital spending plan," said Toby Shea, vice president and senior credit officer, in a press release.

"The outcome of the rate case, which ComEd will likely appeal, indicates that the utility is facing a more contentious and restrictive regulatory environment in Illinois, which has significant negative credit implications," Shea added.

The ICC’s decision stipulates an authorized return on equity of 8.91%, ranking it among the lowest 5% of all authorized ROEs for U.S. electric utilities over the past three years, Moody’s noted.

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