Research Update: Edison International And Subsidiary Southern California Edison Co. Ratings Remain On CreditWatch Negative

Assembly Bill 1054 (AB 1054) and other related bills, which address investor-owned utilities' exposure to wildfire liabilities, were signed into California State law. On July 15, 2019, S&P Global Ratings announced that its ratings on Edison International (Edison) and its subsidiary, Southern California Edison Co. (SCE), remain on CreditWatch with negative implications, including the 'BBB' issuer credit ratings on the companies. We had placed the ratings on CreditWatch on Jan. 21, 2019. While we view AB 1054 as likely to reduce Edison's wildfire-related liabilities over the medium term, this is predicated upon Edison's willingness to participate in the newly authorized state utility insurance fund, and its ability to receive a valid safety certification from the California Public Utilities Commission (CPUC)

...- Assembly Bill 1054 (AB 1054) and other related bills, which address investor-owned utilities' exposure to wildfire liabilities, were signed into California State law. - On July 15, 2019, S&P Global Ratings announced that its ratings on Edison International (Edison) and its subsidiary, Southern California Edison Co. (SCE), remain on CreditWatch with negative implications, including the '###' issuer credit ratings on the companies. We had placed the ratings on CreditWatch on Jan. 21, 2019. - While we view AB 1054 as likely to reduce Edison's wildfire-related liabilities over the medium term, this is predicated upon Edison's willingness to participate in the newly authorized state utility insurance fund, and its ability to receive a valid safety certification from the California Public Utilities Commission (CPUC) in a timely manner. Should Edison take these steps, under AB 1054, Edison would benefit from the added credit-supportive measures of a predetermined cap and specified standards...

Research Update