Constellation Energy Generation LLC's Proposed $1.25 Billion Senior Unsecured Notes Due 2028 And 2033 Rated 'BBB'

NEW YORK (S&P Global Ratings) Feb. 21, 2023--S&P Global Ratings today assigned its 'BBB' issue-level rating to Constellation Energy Generation LLC's proposed $1.25 billion senior unsecured notes, which the company will issue in two tranches maturing 2028 and 2033, respectively. Constellation intends to use the net proceeds from this issuance primarily to repay its commercial paper borrowings or the outstanding amounts on its accounts receivable (A/R) securitization facility. Therefore, we view the transaction as leverage neutral. The positive outlook on the company reflects our expectation that its business risk will continue to improve, which could lead us to raise our rating if we expect its leverage will remain near 2.0x. We also expect Constellation will generate robust cash flows with

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