Summary: Southern California Public Power Authority; Wholesale Electric

S&P Global Ratings revised the outlook to negative from stable and affirmed its 'AA-' rating on the Southern California Public Power Authority's (SCPPA) subordinate transmission project revenue bonds outstanding, issued for the Southern Transmission System (STS). We revised the outlook following the recent lowering of the long-term and underlying ratings on Los Angeles Department of Water&Power's (LADWP) power system revenue bonds to 'AA-' with a negative outlook from 'AA'. Although the possibility of default is remote, we view the rating on the project as highly influenced by our credit ratings and outlooks on LADWP and Glendale, which together represent over 60% of transmission entitlement and debt service. The rating action on LADWP reflected our updated assessment of the

...S&P Global Ratings revised the outlook to negative from stable and affirmed its '##-' rating on the Southern California Public Power Authority's (SCPPA) subordinate transmission project revenue bonds outstanding, issued for the Southern Transmission System (STS). We revised the outlook following the recent lowering of the long-term and underlying ratings on Los Angeles Department of Water & Power's (LADWP) power system revenue bonds to '##-' with a negative outlook from '##'. Although the possibility of default is remote, we view the rating on the project as highly influenced by our credit ratings and outlooks on LADWP and Glendale, which together represent over 60% of transmission entitlement and debt service. The rating action on LADWP reflected our updated assessment of the department's overall wildfire risk profile as informed by our review of its revised wildfire mitigation plan taken in conjunction with the department's specific wildfire exposure and ongoing potential liability claims...

Summary