We are affirming the corporate credit ratings for Rosemead, Calif.-based Edison International (EIX) and its largest subsidiary, Southern California Edison (SCE). The rating affirmations reflect 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 about 74% of consolidated 2008 funds from operations (FFO). 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
