The ratings on utility holding company Edison International reflect the consolidated financial and credit profiles of the parent company, its regulated utility subsidiary Southern California Edison Co. (SCE), and Edison Funding Co., an Edison International subsidiary. Edison Funding is a subsidiary of and financing vehicle for Edison Capital, an intermediate holding company. 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
