Research Update: Edison International And Subsidiary Ratings Affirmed, Outlook Remains Negative

Senate Bill 901 passed through the California State Legislature and was sent to the Governor to be signed into law. We are affirming our 'BBB+' issuer credit ratings on Edison International (EIX) and subsidiary Southern California Edison Co (SCE). The outlooks remain negative. We are revising our assessments of EIX's and SCE's business risk profiles downward to strong from excellent. We are also revising our assessment of the companies' comparable rating analysis modifiers to positive from negative. The negative outlooks reflect our view that Senate Bill 901 is a shorter-term measure and further longer-term reform is necessary in California to preserve the state's electric utilities' credit quality. This includes reform to the legal doctrine of inverse condemnation, which imposes liability

...+ Senate Bill 901 passed through the California State Legislature and was sent to the Governor to be signed into law. + We are affirming our '###+' issuer credit ratings on Edison International (EIX) and subsidiary Southern California Edison Co (SCE). The outlooks remain negative. + We are revising our assessments of EIX's and SCE's business risk profiles downward to strong from excellent. We are also revising our assessment of the companies' comparable rating analysis modifiers to positive from negative. + The negative outlooks reflect our view that Senate Bill 901 is a shorter-term measure and further longer-term reform is necessary in California to preserve the state's electric utilities' credit quality. This includes reform to the legal doctrine of inverse condemnation, which imposes liability on a utility regardless of the utility's negligence if its assets were the substantial cause of a wildfire....

Research Update