Fitch Rates Constellation's Junior Subordinated Notes 'BBB'

CHICAGO--(Business Wire)--
Fitch Ratings has assigned a rating of 'BBB' to Constellation
Energy Group, Inc. (CEG, Issuer Default Rating (IDR) rated 'BBB+',
Stable Outlook) issuance of junior subordinated notes. The Rating
Outlook is Stable. Based on Fitch's hybrid criteria, these notes will
receive 75% equity treatment (see 'Equity Credit for Hybrids & Other
Capital Securities' dated Sept. 27, 2006 at www.fitchratings.com).

The notes will be used for general corporate purposes. In Fitch's
view, the issuance is supportive of CEG's credit quality because it
increases the amount of liquidity available to support unregulated
operations. Fitch believes the biggest risk to the company's ratings
is a liquidity event. CEG's unregulated operations consist primarily
of merchant generation, competitive retail supply, and trading. The
long-term hedges for the generation and retail supply portfolio, in
addition to the trading business, create substantial liquidity
demands. Increasing available liquidity improves CEG's ability to
weather an adverse market and credit event.

On April 8, 2008, Fitch affirmed the IDR and other ratings of CEG
and Baltimore Gas and Electric Company (BGE; rated 'BBB+' by Fitch)
and removed the ratings from Rating Watch Negative, based on the
settlement between the two companies and the State of Maryland and the
Maryland Public Service Commission. In Fitch's view, the settlement
resolved most of the outstanding legal and regulatory issues, and
signaled the potential for a more constructive regulatory and
political environment.

Fitch's rating definitions and the terms of use of such ratings
are available on the agency's public site, www.fitchratings.com.
Published ratings, criteria and methodologies are available from this
site, at all times. Fitch's code of conduct, confidentiality,
conflicts of interest, affiliate firewall, compliance and other
relevant policies and procedures are also available from the 'Code of
Conduct' section of this site.

Fitch Ratings
Justin Bowersock, CFA, +1-312-368-3151 (Chicago)
Glen Grabelsky, +1-212-908-0577 (New York)
Media Relations:
Sandro Scenga, +1-212-908-0278 (New York)

Copyright Business Wire 2008