Energy holding company Edison International's (EIX) business risk profile is "strong" based on its ownership of electric utility Southern California Edison Co. (SCE; BBB+/Stable/A-2) and Edison Mission Energy (EME; CCC/Negative/--). EIX's financial risk profile is "aggressive," reflecting both high leverage and the risks that EME's merchant operations impose on EIX. SCE's credit profile is the mainstay of the EIX rating, despite the regulatory insulation that limits the parent's access to the financial resources of its utility subsidiary. SCE is a large, regulated electric utility with integrated assets (generation, transmission, and distribution) in Southern California, centered in the populous and relatively prosperous metropolitan Los Angeles area. It does not serve the city itself. SCE owns only 5,600 megawatts (MW) of mostly
