Moody’s upgrades Atlantic City Electric

Moody's Investors Service said it upgraded Atlantic City Electric Co.'s (ACE) issuer rating to Baa1 from Baa2 and senior secured rating to A2 from A3.

The company’s commercial-paper rating was affirmed at P-2 and the outlook was changed to stable from positive.

The New Jersey Board of Public Utility recently approved the implementation plan for ACE's infrastructure investment program, Moody’s said.

The upgrades reflect that the approval is a sign of an improved regulatory environment, the agency said.

The ratings reflect the low business risk associated with transmission and distribution (T&D) operations and financial metrics that are commensurate for the Baa1 rating, Moody’s said.

Even though ACE operates in an economically challenged territory and had historically experienced a less supportive regulatory environment, the local economy has improved and so has its regulatory environment, the agency explained.

But the company still faces significant regulatory lag, Moody’s said.

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