Fitch Rates ConEdison Company of New York $1.2B Debentures 'A-'; Outlook Stable

Business Wire, April 2, 2008

NEW YORK -- Fitch Ratings has assigned an 'A-' rating to Consolidated Edison Company of New York's (ConEdNY; IDR rated 'BBB+' by Fitch) issuance of $600 million 5.85% debentures, series 2008A due 2018 and $600 million 6.75% debentures, series 2008B, due 2038. This issue will rank equally with the company's existing senior unsecured obligations. The proceeds of the issuance will be used for general corporate purposes and to repay short term debt. The Rating Outlook is Stable.

ConEdNY's credit rating is consistent with projected cash flow credit measures (such as debt to operating cash flow and cash flow interest coverage) and high forecasted capital expenditures in excess of $2 billion per annum from 2008-2010. The Stable Rating Outlook is based on the expectation that New York Public Service Commission (NYPSC) will continue procedures that allow ConEdNY to recover on a timely basis all commodity costs of fuel, electric power and capacity purchased on behalf of consumers, a practice that tends to stabilize the company's cash flow. The NYPSC last week authorized a $425 million increase in the utility's electric rates for effect as of Apr. 1, 2008. Of that amount, $236.5 million was made subject to refund based on the results of an investigation of ConEdNY's capital expenditures for electric distribution and transmission facilities over the period 2005-2008 in excess of the amount included in the 2005 electric rate order. Fitch's outlook assumes the review of prior investments in utility facilities will be resolved without material disallowances or refunds. For more on Fitch's ratings of ConEdNY, please see Fitch's rating action comment on March 28, 2008 'Fitch Completes Review of Con Ed Inc. Group, Resolves Rtg Watch'.

ConEdNY is a regulated utility subsidiary of Consolidated Edison, Inc. that provides electric service in all of New York City (except part of Queens) and most of Westchester County, an approximately 660-square-mile service area, with a population of more than eight million. It also provides gas service in Manhattan, the Bronx, and parts of Queens and Westchester and steam service in parts of Manhattan. The company's parent and sole owner is Consolidated Edison, Inc. (senior unsecured debt rated 'BBB+' by Fitch).

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