Fitch lifts ComEd, affirms Exelon, PECO

Fitch Ratings said it removed Commonwealth Edison Co.'s ratings from Ratings Watch positive and upgraded the issuer default rating to BB+ from BB, senior unsecured debt to BBB- from BB+ and preferred stock to BB from BB-.

The agency also affirmed ComEd's short-term issuer default at B and commercial paper at B; Exelon Corp.'s issuer default rating at BBB+, senior unsecured debt at BBB+, short-term issuer default at F2 and commercial paper at F2; Exelon Generation Co., LLC's issuer default rating at BBB+, senior unsecured debt at BBB+, short-term issuer default rating at F2 and commercial paper at F2; and PECO Energy Co.'s issuer default rating at BBB+, preferred stock at BBB+, short-term issuer default rating at F2 and commercial paper at F2.

The Illinois Electricity Settlement Legislation provides $1 billion of rate credits over a four-year period for residential and small commercial customers in Illinois, according to the agency. The majority of the rate credits will be funded by Exelon Generation with only a modest contribution by ComEd, Fitch said.

The legislation also creates a new state agency, the Illinois Power Agency, to procure power on behalf of the Illinois utilities residential and small commercial customers through a request for proposal process with all costs passed through to rate payers, the agency said.

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