S&P gives SCE preferred shares BB+

S&P said it assigned its BB+ issue-level rating to SCE Trust VII's planned $550 million of fixed-rate trust preference securities series M. The agency gave a BBB issuer credit rating to SCE Trust VII with a stable outlook in line with the rating and outlook on parent Southern California Edison Co.

“We rate the preference securities two notches below our issuer credit rating on SCE Trust VII to reflect their subordination and the company's ability to defer dividends on the instrument. The instruments are subordinated to all of SCE Trust VII's existing and future senior debt obligations, satisfying the condition for subordination. In addition, the dividends are deferrable, which fulfills the deferability element,” S&P said in a statement.

The company intends to use the net proceeds to repay commercial paper borrowings and for general corporate purposes.

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