Moody's Affirms PJM's Investment-Grade Credit Rating

VALLEY FORGE, Pa., Aug. 19 /PRNewswire/ -- Moody's Investors Service has confirmed PJM Interconnection's Aa3 debt rating with a stable financial rating outlook. The Aa3 rating is one of Moody's highest investment-grade rankings. It is comparable to an AA- on other rating scales.

Moody's said the rating is supported by PJM's "ability to recover costs, the creditworthiness of its members, a low business risk profile and the vital function it plays within its service territory."

"This very strong investment-grade rating reflects how creditworthy PJM is considered because of our healthy operating performance and solid business practices," said Suzanne S. Daugherty, vice president, chief financial officer and treasurer of PJM. "It reflects especially well on the strength of our 630 member organizations, our role as steward of reliable electricity in the region and our innovative spirit in fostering robust and competitive electric power markets."

Among Moody's considerations in setting PJM's credit rating:

• PJM manages its budget within limits defined and agreed upon in advance and as recovered under its stated rates.
• PJM employs stringent credit standards that all members are subject to both upon application for membership and on an on-going basis.
• Approximately 70 percent of PJM market activity is transacted by companies with investment-grade credit ratings or that have provided a guaranty from an affiliate with an investment grade rating.
• Additional considerations included PJM's long-term operating history, the size and scope of its region and the company's role in providing a liquid marketplace for wholesale electricity.

Moody's is a leading provider of market-based quantitative services for banks and investors in credit-sensitive assets serving the world's largest financial institutions.

PJM Interconnection, founded in 1927, ensures the reliability of the high-voltage electric power system serving 51 million people in all or parts of Delaware, Illinois, Indiana, Kentucky, Maryland, Michigan, New Jersey, North Carolina, Ohio, Pennsylvania, Tennessee, Virginia, West Virginia and the District of Columbia. PJM coordinates and directs the operation of the region's transmission grid, which includes 6,038 substations and 56,500 miles of transmission lines; administers a competitive wholesale electricity market; and plans regional transmission expansion improvements to maintain grid reliability and relieve congestion. Visit PJM at www.pjm.com.

SOURCE PJM Interconnection