Fitch rates Southern California Edison bonds BBB+

Fitch Ratings said it assigned a BBB+ rating to Southern California Edison Co.'s issuance of first- and refunding-mortgage bonds and placed them on Rating Watch negative.

Southern California's long-term issuer default rating is BBB- and also on negative watch.

The ratings on the company have been downgraded recently to reflect the risk of large incremental catastrophic wildfires in 2019 and beyond, Fitch said, and associated outsized third party liabilities.

That's due to the uncertain path to full recovery of wildfire-related liabilities on a timely basis under state laws, the agency said.

There continues to be a timing mismatch between net costs incurred by Southern California Edison and authorization of recovery in rates by the California Public Utilities Commission, Fitch said.

The actions also consider the need for a legislative solution for recovery of 2018 wildfire-related costs, putting them on the same footing as 2017 wildfires, the agency said.

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