Moody's could cut Exelon

Moody's Investors Service said it placed the Baa2 senior unsecured ratings of Exelon Corp. under review for possible downgrade along with the Baa1 senior unsecured long-term ratings of its primary subsidiary, Exelon Generation Co., LLC.

Exelon's Prime-2 short-term rating for commercial paper is also under review for possible downgrade; however, Exelon Generation's short-term rating for commercial paper is not under review and affirmed at Prime-2.

"Today's rating action follows our assessment and concerns with Exelon's financing plan outlined last week which contemplates debt financing 100% of the expected negative free cash flow over the next few years caused by weakened operating cash flow, a sizeable dividend and a substantial capital investment program," Moody's senior vice president A.J. Sabatelle said in a news release.

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