Exelon Generation Co. LLC

Earlier this year, Exelon disclosed that it expects its 2020 credit measures to be below our downgrade threshold, hurt by the COVID-19 pandemic and unfavorable weather. The company expects 2020 funds from operations (FFO) to debt to be at about 18% or below our downgrade threshold of 19%. Over the next three years, we expect that Exelon's consolidated FFO to debt will be 18%-20%, indicative of financial measures that are either below our downgrade threshold or have very minimal financial cushion for the current rating. ExGen's open gross margins are under pressure from a secular decline in power prices. As a result, ExGen undertakes ratable hedging of its expected forward power production to bring predictability to its future cash flows,

...As a core subsidiary, ExGen's ratings and outlooks reflect those on parent Exelon Cop. We revised our rating outlook on Exelon Generation Co. LLC's (ExGen) parent Exelon Corp. in July 2020. The revised outlook reflects consolidated Exelon's minimal financial cushion for our current rating and the U.S. Attorney's Office for the Northern District of Illinois (USND's) investigation of alleged corrupt conduct of former officers at Commonwealth Edison Co. (ComEd), one of Exelon's utility subsidiaries. While ComEd has entered into a deferred prosecution agreement, we believe that could still lead to increased business risk for Exelon. Earlier this year, Exelon disclosed that it expects its 2020 credit measures to be below our downgrade threshold, hurt by the COVID-19 pandemic and unfavorable weather. The company expects 2020 funds from operations (FFO) to debt to be at about 18% or below our downgrade threshold of 19%. Over the next three years, we expect that Exelon's consolidated FFO to debt...

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