Fitch provides BBB+ to Exelon notes

Fitch Ratings said it assigned a BBB+ rating to Exelon Corp.'s new issue of senior notes to be offered in multiple tranches.

Proceeds will be used for to fund a portion of Exelon’s pending acquisition of Pepco Holdings, Inc., with any remaining balance to be used for general corporate purposes.

The notes will rank equally with all other senior unsecured debt and will be senior in right of payment to all subordinated debt.

The new issues are placed on Rating Watch Negative, as are Exelon’s outstanding securities.

The negative watch reflects the increased leverage that results from Exelon’s pending acquisition of Pepco (BBB). The higher leverage is a product of the acquisition financing plan and the consolidation of the more levered Pepco. The rise in leverage is mitigated in part by an increase in regulated earnings.

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