Fitch affirms Exelon

Fitch Ratings said it affirmed the issuer default ratings and instrument ratings of Exelon Corp. and Constellation Energy Group, Inc. and each of their subsidiaries following the announcement of a stock-for-stock merger agreement.

Fitch affirmed Exelon and Exelon Generation Co., LLC's BBB+ issuer default ratings, BBB+ senior debt, F2 commercial paper and F2 short-term issuer default ratings as well as Commonwealth Edison Co.'s BBB- issuer default rating, BBB+ first mortgage bonds, BBB senior debt, BB+ preferred stock, F3 short-term issuer default rating and F3 commercial paper.

Fitch affirmed ComEd Financing Trust III's preferred stock at BB+; PECO Energy Co.'s issuer default rating at BBB+, first mortgage bonds at A, secured pollution control revenue bonds at A, senior debt at A-, preferred stock at BBB, commercial paper at F2 and short-term issuer default rating at F2; and PECO Energy Capital Trust III and PECO Energy Capital Trust IV's preferred stock at BBB.

Fitch also affirmed Constellation's issuer default rating at BBB-, senior debt at BBB-, junior subordinated notes at BB, commercial paper at F3 and short-term issuer default rating at F3 and Baltimore Gas and Electric Co.'s issuer default rating at BBB, first mortgage bonds at A-, senior debt at BBB+, pollution control bonds at BBB+, preferred stock at BBB-, short-term issuer default rating at F2 and commercial paper at F2.

The outlook for all entities is stable.

The Exelon affirmation reflects the stock-for-stock nature of the transaction, which results in a post merger consolidated credit profile that is only moderately weaker than its standalone credit profile, the agency said.

Exelon's overall business risk will remain relatively unchanged, with regulated earnings contributing nearly half of projected 2012 EBITDA as either a standalone or combined entity, the agency added.

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