PECO's credit reflects its low-risk T&D operations and supportive regulatory environment, offset by high capital expenditures and the potentially lower metrics due to the corporate AMT.
PECO has strong credit fundamentals, but its cash flow coverage is under pressure because of high capex and the potential that parent Exelon will be subject to the alternative minimum tax.
Our credit view of PECO Energy reflects its low risk T&D business and supportive regulatory environment, offset by an elevated capital expenditure program.
PECO Energy's credit reflects its low risk regulated T&D business and metrics that could fall in 2020 due to the coronavirus, but should recover in 2021.