Public Service Enterprise Group (PSEG) recently announced it would explore strategic alternatives for the non-nuclear power assets its subsidiary, PSEG Power LLC, owns. Given the increased likelihood that the parent will sell a portion of PSEG Power's assets in the near to medium term, we no longer think the entity is core to PSEG's long-term strategy. We are lowering the issuer credit rating on PSEG Power to 'BBB' from 'BBB+'. We are also lowering the issue-level rating on the senior unsecured debt to 'BBB' to remain in line with the issuer credit rating. The outlook is stable. We believe the rating on PSEG Power is unlikely to change following the conclusion of the planned sale of the company's fossil fuel
