OREANDA-NEWS. Fitch Ratings has affirmed the rating for PSE&G Transition Funding Co., LLC 2001-1. A full list of rating actions follows at the end of this release.

KEY RATING DRIVERS

The transaction is performing within expectations, with levels of outstanding principal amounts in-line with their targeted amortization schedule. The true-up mechanism is performing as expected, providing adequate credit support for all the remaining outstanding class.

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.

DUE DILIGENCE USAGE

No third party due diligence was provided or reviewed in relation to this rating action.

Fitch affirmed the following ratings:

PSE&G Transition Funding Co., LLC 2001-1
--A-8 notes at 'AAAsf; Outlook Stable.