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The following is a press release from Moody's Investors Service: $75 MILLION OF DEBT AFFECTED. RATING SUPPORTED BY THE SUBSTITUTE LETTER OF CREDIT PROVIDED BY ROYAL BANK OF SCOTLAND, PLC AND CONSTELLATION ENERGY GROUP, INC. Maryland Economic Development Corporation Constellation Energy Group, Inc. Royal Bank of Scotland PLC Fully Supported Maryland NEW YORK, July 15, 2010 -- Moody's Investors Service has affirmed the Aaa/VMIG 1 rating of the $75,000,000 Maryland Economic Development Corporation Adjustable Mode Revenue Refunding Bonds, (Constellation Energy Group, Inc. Project), Series 2006A (the Bonds) in conjunction with the substitution of the current letter of credit securing the Bonds provided by Wachovia Bank, National Association with a direct-pay letter of credit (LOC) to be provided by Royal Bank of Scotland, PLC . Upon the substitution of the letter of credit the long-term rating on the Bonds will reflect Moody's approach to rating jointly supported transactions and is based upon the letter of credit provided by Royal Bank of Scotland, PLC (the Bank); the underlying rating on the Bonds; the structure and legal protections of the transaction, which ensures timely debt service payments to investors; and Moody's evaluation of the credit quality of the institution providing the letter of credit. The timely payment of purchase price is reflected in the short-term rating of the Bonds. The short-term rating of the Bonds is based upon the short-term rating of the Bank as provider of the letter of credit. The Bank is currently rated Aa3 for its long-term bank deposits and Prime-1 for its short-term bank deposits. Moody's currently maintains an underlying rating of Baa3 on the Bonds. Since a loss to investors will occur only if the Bank and Constellation Energy Group, Inc. (CEG)each default in payment, Moody's has affirmed the rating based upon the joint probability of default by both parties. In determining the joint probability of default, Moody's considers the level of correlation between the Bank and CEG. Moody's has determined that there is a low level of correlation between the Bank and CEG. Given this correlation, we believe the joint probability of default of Royal Bank of Scotland, PLC rated Aa3 and Constellation Energy Group, Inc. rated Baa3, results in credit risk consistent with an Aaa rating for the Bonds. INTEREST RATE MODES AND PAYMENT The Bonds will continue to bear interest in a weekly interest rate mode and interest will be paid on the first business day of each month. The trust indenture permits the conversion of the Bonds, in whole, to a flexible term or long term rate. The Bonds will be subject to mandatory purchase upon such conversion. Our rating only applies to Bonds bearing interest in the weekly interest rate. ADDITIONAL BONDS No additional bonds are permitted by the trust indenture. FLOW OF FUNDS The trustee is instructed to draw under the LOC for principal and interest on each interest payment date, redemption date or acceleration date as well as for purchase price on each purchase date to the extent remarketing proceeds received are insufficient. Bonds which are purchased by the Bank due to a failed remarketing are held by the trustee and will not be released until the trustee has received written confirmation from the Bank stating that the LOC has been reinstated in the amount of the purchase price drawn for such Bonds. In the event the Bank fails to honor a draw under the LOC the trustee is instructed to notify CEG in order to obtain funds to make timely payment. LETTER OF CREDIT The LOC is sized for full principal plus thirty-five (35) days of interest at the maximum rate applicable to the Bonds (12%) and will provide coverage for Bonds while they bear interest in the weekly rate and monthly rate. The LOC provided is subject to The International Standby Practices (ISP98). DRAWS ON THE LETTER OF CREDIT Conforming draws for principal and interest presented to the Bank at or before 11:00 a.m. on a business day will be honored by the Bank by 1:00 p.m. on the same business day. All times referenced are the time in effect in New York, NY. REINSTATEMENT OF INTEREST DRAWS Draws made under the letter of credit for interest shall be automatically reinstated immediately upon the honoring of each interest drawing. REIMBURSEMENT AGREEMENT DEFAULTS Upon an event of default under the reimbursement agreement, the Bank may direct the trustee to accelerate the Bonds or to cause a mandatory tender of the Bonds. Upon receipt of direction from the Bank to accelerate the Bonds, the trustee will declare the principal of and accrued interest on the Bonds immediately due and payable. Interest ceases to accrue interest upon such declaration of acceleration. The Bonds will be subject to mandatory tender on the fourth business day following receipt by the trustee of written notice from the Bank that an event of default under the reimbursement agreement has occurred and directing the trustee to cause the mandatory tender of the Bonds. EXPIRATION / TERMINATION OF THE LETTER OF CREDIT The letter of credit will expire upon the earliest to occur of (1) the close of business on July 15, 2011, or such date as may be extended pursuant to the automatic extension provisions of the letter of credit; (2) the date on which the principal and interest on the Bonds have been paid in full; (3) the close of business on the second business day following conversion of the interest rate on the Bonds to a long term rate; (4) the date on which the Bank honors the draft by the trustee accelerating the Bonds due to an event of default under the indenture; (5) the date that is 10 business days following the trustee's receipt of notice from the Bank that an event of default under the Credit Agreement has occurred and a written request that the Bonds be accelerated or tendered for purchase; (6)the date on which the Bank honors a draft to purchase the Bonds in conjunction with a mandatory purchase following an event of default under the Credit Agreement; (7) the date on which the letter of credit is surrendered by the trustee to the Bank for cancellation following the acceptance of an alternate letter of credit; and (8) the date the bank honors the final draw under the letter of credit. SUBSTITUTION The Bonds will be subject to mandatory tender on the effective date of an alternate letter of credit. Draws for purchase price upon the substitution of the letter of credit will be made under the existing letter of credit and the existing letter of credit may not be surrendered to the Bank for cancellation until such tender draw has been honored. OPTIONAL TENDERS Bondholders may optionally tender their Bonds, while in the weekly rate mode, on any business day with seven days prior written notice to the remarketing agent and trustee. . MANDATORY PURCHASES The Bonds are subject to mandatory purchase on the earliest to occur of: (1) each interest rate conversion date, including proposed conversion dates; (2) the second business day preceding the stated expiration date of the letter of credit; (3) the effective date of a substitute letter of credit; (4) if the Bonds are bearing interest at the flexible term rate, the first business day following the last day of such period; (5) the fourth business day following receipt by the trustee of written notice from the Bank that an event of default under the reimbursement agreement has occurred with written direction from the Bank that all of the Bonds be tendered for purchase; (6) while the Bonds bear interest at the weekly rate, any business day designated by the borrower, with the consent of the Bank, provided that such designation and consent are made in writing at least 25 days prior to such purchase date; (7) the first business day that is at least 25 days after receipt by the trustee of written notice from the borrower that no rating agency is continuing to maintain any rating on the Notes. The last rating action with respect to the Bonds occurred on May 10, 2006 when the Bonds were rated Aaa/VMIG 1. For more information on the Bonds please see Moody's new issue report dated May 10, 2006. METHODOLOGY The principal methodology used in rating this issue was Moody's Rating Methodology for Letter of Credit Supported Transactions, published in October 2005 and available on www.moodys.com in the Rating Methodologies sub-directory under the Research & Ratings tab. Other methodologies and factors that may have been considered in the process of rating this issue can also be found in the Rating Methodologies sub-directory on Moody's website. KEY CONTACTS Underwriter: Morgan Stanley Trustee: Manufacturers and Traders Trust Company Remarketing Agent: Morgan Stanley ANALYSTS: Coby Kutcher, Analyst, Public Finance Group, Moody's Investors Service Michael J. Loughlin, Senior Credit Officer, Public Finance Group, Moody's Investors Service CONTACTS: Journalists: (212) 553-0376 Research Clients: (212) 553-1653 Copyright 2010 Moody's Investors Service, Inc. and/or its licensors and affiliates (collectively, "MOODY'S"). All rights reserved. CREDIT RATINGS ARE MOODY'S INVESTORS SERVICE, INC.'S ("MIS") CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MIS DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL, FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. (MORE TO FOLLOW) Dow Jones Newswires July 15, 2010 11:01 ET (15:01 GMT)