Fitch affirms Edison International, Southern California Edison

Fitch Ratings said it affirmed Edison International Inc.'s issuer default rating at BBB- and short-term issuer default rating at F3 and Southern California Edison Co.'s issuer default rating at A-, senior secured rating at A+, senior unsecured debt at A, preferred securities at A-, short-term issuer default rating at F1 and commercial paper at F1.

The outlook is stable.

Fitch said the affirmation reflects the relatively predictable earning and cash flows of core operating utility subsidiary Southern California Edison, the agency said.

Ratings consider the constructive settlement agreement finalized by the company with the Internal Revenue Service in the second quarter, the agency noted.

Ratings also reflect the adverse effect on wholly owned unregulated power generation subsidiary Edison Mission Energy of the sharp decline in the price of power and natural gas caused by a cyclical decline in demand along with higher than expected natural gas supplies from non-traditional resources, the agency said.

Trailing 12-month debt-to-EBITDA ratio was 4.1 times for Edison International and 2.9x for Southern California Edison.

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