S&P affirms Exelon on Pepco acquisition

Standard & Poor's said it affirmed a BBB corporate credit rating on Exelon Corp.

The agency also affirmed the corporate credit ratings on Exelon's utility subsidiaries, Commonwealth Edison Co. (ComEd) and PECO Energy Co., and its unregulated supply company, Exelon Generation Co. LLC (ExGen).

The outlook on the group is stable.

The agency also said it affirmed the ratings on Baltimore Gas & Electric Co. The outlook on Baltimore Gas is stable.

S&P also said it affirmed the BBB+ issuer credit ratings on Pepco Holdings Inc. and its transmission and distribution utility subsidiaries, Atlantic City Electric Co., Delmarva Power & Light Co. and Potomac Electric Power Co.

The affirms follow news that Exelon has made a firm offer to acquire the common stock of Pepco Holdings Inc. in cash for $27.25 per share or about $6.9 billion. The deal includes the assumption of Pepco's debt of $5.6 billion, S&P said.

The transaction requires approval of several regulatory agencies, the agency said.

The affirmations reflect an expectation that Exelon will structure the transaction in a manner that provides credit insulation for the subsidiaries sufficient to support current ratings, S&P said.

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