The ratings on Edison International reflect the consolidated financial and credit profiles of Edison International, Southern California Edison Co. (SCE), and Edison Funding Co., an Edison International subsidiary. The utility's current and projected financial profile and the regulatory and operational risks facing the utility are the principal influences on Edison International's and SCE's credit quality. Edison International's and SCE's ratings were evaluated independently of their merchant energy affiliates' financial performance. This analytical approach is based on expectations that Edison International, SCE, Edison Capital, and its Edison Funding subsidiary, will be shielded from the financial difficulties that their affiliate merchant energy companies are experiencing because management has pledged that capital will not flow to the merchant companies from their affiliates and
