...Rating Derivation versus Peers Peer Comparison Oncor's ratings are well positioned compared to its peer T&D utilities in Texas, which include CenterPoint Houston Electric Inc. (CEHE; IDR A¡/Stable) and AEP Texas Inc. (BBB+/Stable). The forecast FFO- adjusted leverage for Oncor (4.9x) is comparable to that of AEP Texas but weaker compared with CEHE (4.0x) given a lower proportion of equity in the approved regulatory capital structure (42.5% versus CEHE's 45%) and relatively higher capex. Oncor's authorized ROE is 9.8% compared with 10.0% at CEHE and 9.96% at AEP Texas. Parent/Subsidiary Linkage Given the ring-fencing around Oncor, its ratings are not linked to that of its indirect parent, Sempra. Country Ceiling No Country Ceiling constraint was in effect for these ratings. Operating Environment No Operating Environment influence was in effect for these ratings. Other Factors Not applicable....
