We are affirming the corporate credit and debt ratings for Rosemead, Calif.-based Edison International (EIX) and its largest subsidiary, Southern California Edison (SCE). The ratings affirmation reflects our view that despite the two-notch downgrade of EIX's second most important subsidiary, Edison Mission Energy (EME), to B/Negative/-- consolidated credit metrics are expected to continue to support the parent's ratings, due to the continued stability of SCE, which provides the company with the majority of its consolidated cash flows. The affirmation also importantly reflects our view that EIX will not support EME, which faces significant profitability challenges over the next two years. The stable outlook reflects expectations that while some deterioration in EIX's consolidated credit metrics is anticipated as a function of
