On Feb. 16, 2005, Standard&Poor's Ratings Services raised its corporate credit rating on Southern California Edison Co. (SCE) to 'BBB+' from 'BBB'. Standard&Poor's also raised its corporate credit rating on Edison International to 'BBB' from 'BB+'. The outlook is stable. The upgrade follows favorable regulatory developments that are viewed as supportive of credit quality and strengthening legislative and regulatory protections created in response to California's 2000-2001 energy crisis. In particular, a December 2004 California Public Utilities (CPUC) decision administratively extended legislative protection of the electric procurement component of operating cash flow that was set to expire in late 2005. Also, in late 2004, Edison International retired all of its debt with cash on hand, thereby strengthening
