Eight Stranded Utility-Backed Securitization Ratings Affirmed

  • First Energy Ohio PIRB Special Purpose Trust 2013 is a stranded-cost securitization backed by phase-in-recovery property. The trust holds CEI Funding, OE Funding LLC, and TE Funding LLC (collectively, the Funding LLC Bonds) as collateral.
  • We affirmed our 'AAA (sf)' ratings on two classes from TE Funding LLC, two classes from OE Funding LLC, two classes from CEI Funding LLC, and two classes from FirstEnergy Ohio PIRB Special Purpose Trust 2013.
  • The ratings reflect our view of the transaction's pass-through structure, phase-in-recovery property held by each bond issuer, nonbypassable charges, true-up mechanisms, and capital and excess fund subaccounts, among other factors.
SAN FRANCISCO (S&P Global Ratings) Aug. 26, 2019--S&P Global Ratings today 
affirmed its ratings on the class A-2 and A-3 pass-through certificates from 
the CEI Funding LLC, OE Funding LLC, and TE Funding LLC bonds and affirmed the 
A-2 and A-3 certificates from FirstEnergy Ohio PIRB Special Purpose Trust 2013 
(see list). All of these series are stranded cost securitizations.

The affirmed ratings reflect our opinion of:
  • The pass-through structure of the trust;
  • The ratings on the Funding LLC bonds that the PIRB Special Purpose Trust holds as collateral;
  • The irrevocable statutory provisions and regulatory approvals, including the mandatory periodic true-up of a nonbypassable electric usage based phase-in-recovery charge from retail customers in each seller's service territory;
  • The fully funded capital subaccount;
  • The excess funds subaccount, which is also available to cover any shortfalls in collections; and
  • The servicers' (The Cleveland Electric Illuminating Co.'s, Ohio Edison Co.'s, and The Toledo Edison Co.'s) demonstrated servicing abilities.
We will continue to review whether, in our view, the ratings assigned to the 
notes remain consistent with the credit enhancement available to support them 
and will take rating action as we deem necessary.

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