...PECO Energy Co.'s ratings reflect the utility's low-risk electric transmission and distribution (T&D) and gas distribution business, supportive regulation and strong credit profile. However, escalating capex and the current three-year rate case cycle for the company's Pennsylvania Public Utility Commission (PAPUC) rate base has decreased headroom at the current rating level. The ratings also reflect the weak to moderate linkage between parent Exelon Corporation (BBB+/Rating Watch Negative[RWN]) and its subsidiaries. Exelon utility subsidiaries' ratings were affirmed upon Exelon's announced divestiture of unregulated subsidiary Exelon Generation Company, LLC (ExGen, BBB/RWN). Fitch Ratings expects Exelon to continue to fund its utility subsidiaries consistent with authorized capital structures, despite the current expectation that Exelon's planned equity issuance upon divestiture will not fully offset the loss of ExGen's cash flow....
