Exelon (EXC -0.1%) opens flat despite receiving a downgrade to Underperform from Neutral with a $36 price target, trimmed from $40, at Mizuho, which believes the company may issue equity to prop up its balance sheet.

Exelon's obligation to buy nuclear plants from Electricite de France could cost $1B and add to the company's equity need, says Mizuho analyst Paul Fremont.

A rating agency credit downgrade could threaten Exelon's access to commercial paper, Fremont adds, noting the S&P's recent move to a negative outlook following U.S. nuclear plant bribery scandals.

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