SoCal Edison Parent Company Stock Rating Goes Negative
Written by 991KBU on December 4, 2018
Southern California Edison Company looks to be in financial trouble.
The rating outlook for its parent company downgraded by Moody’s Investor Service …. a result of two disastrous fires.
The stock rating has gone from stable to negative.
This will make it more expensive for the company to borrow money at a time that it is facing massive costs for rebuilding its electrical system from the Woolsey fire in the Malibu area … and the Thomas Fire in Ventura in Santa Barbara.
Not to mention … the billions of dollars in damages that those two fires cost.
A Moody’s official says the cumulative financial exposure to wildfires … fanned by the effects of climate change … are materializing faster than they originally expected.
And the credit rating company says at the California Legislature is slow to protect the utility company.
Edison international owns Southern California Edison ….
And 99% of Edison International’s income is from the 10 point 5 percent annual profit … guaranteed to the Edison company by the state.
Southern California Edison has 15.3 billion dollars right now in debt to the stockholders …. while Edison international has another 1.7 billion dollars in borrowings on top of that.
Movies also warns that Edison… and other California utilities … tend to receive a high level of attention and scrutiny from both the media and public … and issues can quickly become contentious and can draw lawsuits.