March 12 - Standard & Poor's Ratings Services said today that the March 9,
2012, Federal Energy Regulatory Commission's (FERC) approval of the merger of
Exelon Corp. (BBB/Stable/A-2) and Constellation Energy Group Inc.
(BBB-/Watch Pos/A-3) would not immediately affect ratings. We expected
the FERC approval following approvals from the Maryland Public Service
Commission and the PJM Interconnection market monitor, but also note the
record-setting fine the FERC levied on Constellation for alleged market
manipulation charges dating back to trading activity in 2007 and 2008.
Constellation has denied any wrongdoing, but agreed to the settlement that
resolves the charges. Over the next several weeks we will assess the combined
company's financial risk profile. While power markets have declined
meaningfully--and negatively affect the credit quality of the unregulated
generation business--we expect the pro forma financials to support a 'BBB'