Fitch rates Exelon notes BBB+

Fitch Ratings said it assigned a BBB+ rating to Exelon Generation Co., LLC’s proposed $550 million issue of senior notes due 2020.

The outlook is negative.

The proceeds will be used to fund the optional redemption of $550 million 4.55% senior notes due June 15, 2015 and for general corporate purposes, the agency said.

The operating environment for Exelon’s competitive generation business is challenging with sluggish demand and relatively low natural gas and power prices likely to persist for several years, Fitch said.

Favorably, Exelon is expected to be free cash-flow positive due to reduced capital expenditure and dividend requirements, easing the pressure on credit quality measures, the agency said.

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