Fitch Upgrades Oncor's Notes to 'BBB' on Perfection of Lien; Outlook Stable

Business Wire, May 16, 2008

NEW YORK -- Fitch has upgraded Oncor's senior notes and debentures to 'BBB' from 'BBB-'. A list follows below.

On May 16, 2008 Oncor's unsecured notes became secured by a first lien on existing and future utility property because the notes benefit from a negative pledge. Oncor executed a Deed of Trust Security Agreement for its $2 billion bank credit facility to perfect the bank facility security. Oncor has $2.85 billion of unsecured notes affected by this change, which were issued under two indentures (both dated in 2002). The Rating Outlook of Oncor is Stable and Oncor's 'BBB-' Issuer Default Rating is not affected by today's rating action.

Fitch upgrades the following to 'BBB' from 'BBB-':

--$700,000,000 6.375% Senior Notes due 2012;

--$500,000,000 7.00% Senior Notes due 2032;

--$500,000,000 6.375% Senior Notes due 2015;

--$350,000,000 7.25% Senior Notes due 2033;

--$800,000,000 7.0% Debentures, due 2022.

The Rating Outlook is Stable.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, www.fitchratings.com. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site