The 'BBB' corporate credit ratings of Public Service Enterprise Group Inc. (Enterprise), PSEG Power LLC, and Public Service Electric&Gas Co. (PSE&G) are on CreditWatch with developing implications in response to the Dec. 20, 2004 merger announced between Exelon Corp. and Enterprise. The rating on Enterprise's PSEG Energy Holdings LLC subsidiary is 'BB-' with a negative outlook. PSEG Energy Holdings is rated on a stand-alone basis. Newark, N.J.-based Enterprise has about $10.7 billion in outstanding debt, net of stranded-cost securitization bonds. The CreditWatch listing with developing implications reflects the divergent credit paths facing the Enterprise companies. If the announced merger with Exelon is consummated, as anticipated in early 2006, the credit quality of Enterprise and its subsidiaries should benefit
