Fitch applies A+ to SCE bonds

Fitch Ratings said it assigned an A+ rating to Southern California Edison Co.'s (SCE) first mortgage bond issuance and placed the bonds on rating watch negative.

The agency placed the existing ratings of SCE and its corporate parent Edison International (EIX) on rating watch negative on Feb. 26, primarily reflecting potential exposure to wildfire related third party liabilities.

Fitch said the negative watch reflects potential financial exposure to destructive California wildfires that raged across the state in 2017, causing significant damage in SCE's service territory.

While the cause of the fires is yet to be determined, a finding that SCE equipment was involved in igniting the fires could expose the utility to third party liabilities under claims based on inverse condemnation or, if inverse is not applied, negligence, the agency explained.

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