Fitch rates Oncor notes BBB+

Fitch Ratings said it assigned BBB+ ratings to Oncor Electric Delivery Co. LLC's $400 million of 4.1% senior secured notes due 2022 and $500 million of 5.3% senior secured notes due 2042. The outlook is stable.

Oncor plans to use the proceeds to redeem all or a portion of its $524 million of 5.95% senior secured notes due 2013, to repay borrowings under its $2.4 billion revolving credit facility due 2016 and for general corporate purposes.

The agency said Oncor's rating reflects the stability of its regulated utility cash flows, its relatively strong service territory, balanced regulation as demonstrated in the outcomes of its last rate case and effective ring-fencing from a highly leveraged parent.

Relative to its peers, Oncor exhibits a limited source of equity funding given the poor financial health of its parent, Fitch said. The agency considers Oncor to be effectively ring-fenced from Energy Future Holdings Corp. (CC), but Fitch said Oncor's credit market access or credit spreads could nonetheless become constrained by further deterioration in the financial condition of Energy Future Holdings and non-ring-fenced affiliates.

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