SAN FRANCISCO (Standard&Poor's) Aug. 8, 2008-- Standard&Poor's Ratings Services said today that Edison International's (BBB-/Stable) tax exposure to complex lease arrangements entered into by subsidiary Edison Capital is material, but that recent developments warrant no rating action. As part of its earnings release today, the company disclosed that it has entered into a non-binding, preliminary settlement agreement with the Internal Revenue Service (IRS) regarding all outstanding tax issues dating from 1994 through 2002. The settlement includes the disposition of an estimated $1.6 billion in deferred tax liabilities associated with lease-in/lease-out (LILO) and sale-in/lease-out (SILO) transactions that the IRS has challenged. If consummated, the settlement could be modestly cash positive for consolidated operations. While credit metrics could
