This report does not constitute a rating action. Edison International (Edison) disclosed in its first quarter 2025 financial results that it is probable that Edison and subsidiary Southern California Edison (SCE) will incur material losses in connection with the January 2025 Eaton fire, reflecting the circumstantial facts, the lack of additional evidence that conclusively points to another source of ignition for the Eaton fire, and the pending litigation against the company. We assess this development as negative for credit quality, consistent with our negative rating outlook on the company. This disclosure increases the likelihood that California?s wildfire fund could be depleted at an accelerated pace, without sufficient countermeasures, which would be negative for credit quality. If the fund is depleted,
