...Exelon Merger: The recently closed acquisition of Atlantic City Electric Co. (ACE) and its affiliates by Exelon Corp. (EXC) has no direct impact on ACE's credit metrics, but does provide a stronger, better-capitalized parent company with far greater financial flexibility that supports current ratings. Fitch Ratings anticipates ACE will benefit from improved operating efficiency and lower costs as a result of the merger. The ratings assume EXC will provide equity to support capex and maintain the authorized capital structure. Supportive Credit Metrics: Despite avoidance of rate filings during the merger review, credit quality measures are generally in line with the current rating, which Fitch attributes to equity support, the residual effect of an August 2014 rate increase and moderate capex. Credit metrics are likely to be pressured in 2016 due to merger-related rate concessions, but should improve in 2017, assuming a reasonable outcome to a pending rate case. Fitch expects equity support...
