OREANDA-NEWS. Fitch Ratings has affirmed the ratings on two Atlantic City Electric U.S. utility tariff bond transactions as follows:

Atlantic City Electric Transition Funding LLC, 2002-1
--Class A-4 at 'AAAsf'; Outlook Stable.

Atlantic City Electric Transition Funding LLC, 2003-1
--Class A-3 at 'AAAsf'; Outlook Stable.

KEY RATING DRIVERS

The transactions are performing within expectations, with levels of outstanding principal amounts in-line with the targeted amortization schedules. The true-up mechanism in the transaction is performing as expected, providing adequate credit support for all outstanding classes.

RATING SENSITIVITIES

As part of Fitch's initial rating sensitivity, Fitch conducted a break the bond case which provides an alternative means by which to measure the potential effects of rapid, significant declines in power consumption while capping the residential securitization charges at 20% of the total customer bill. This analysis determines the maximum level of forecasted energy decline that would cause a default in required payments on the securitizations or cause the tariff charges to exceed 20% of the total residual customer bill. Despite this severe decline in consumption, due to the true-up mechanisms, the tariff charges are able to pay all debt service by the legal final maturity date.