Company: SCE-PL
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000827052-25-000100
Chunk: 95

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 7
Chunk 95
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 or equal to 0.70 to 1. At September 30, 2025, Edison International's consolidated debt to total capitalization ratio was 0.64 to 1.

At September 30, 2025, Edison International Parent was in compliance with all financial covenants that affect access to capital.

Following the passage of SB 254 in September 2025, Moody's reaffirmed Edison International Parent's long-term issuer credit rating and outlook, and Fitch also reaffirmed Edison International Parent's credit rating and revised its outlook from ratings watch negative to stable. However, S&P downgraded Edison International Parent's long-term issuer credit rating. For further details on SB 254, see "Management Overview—Southern California Wildfires and Mudslides—Senate Bill 254." The following table summarizes Edison International Parent's current long-term issuer credit ratings and outlook from the major credit rating agencies as of October 21, 2025:

Moody'sFitchS&PCredit RatingBaa2BBBBBB-OutlookStableStableNegative

Edison International Parent's credit ratings may be affected by various factors. These include, but are not limited to, failure by regulators to successfully implement AB 1054 and SB 254 in a consistent and credit-supportive manner, or investigations into wildfire events or associated settlements result in material utility liability exposure, particularly in the absence of broader credit-supportive legislative actions to mitigate SCE's wildfire risk, including those to be recommended under SB 254 in a report due April 1, 2026. Additionally, a persistent increase in the frequency and severity of wildfires in California may lead the credit rating agencies to reassess Edison International Parent's wildfire-related operational risk exposure or believe the Wildfire Insurance Fund is at risk of material depletion. Credit rating downgrades increase the cost and may impact the availability of short-term and long-term borrowings, including commercial paper, credit facilities, bond financings or other borrowings. 

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Edison International Income Taxes

Inflation Reduction Act of 2022

The IRA imposes a 15% corporate alternative minimum tax ("CAMT") on adjusted financial statement income ("AFSI") of corporations with average AFSI exceeding $1.0 billion over the three preceding calendar years. The CAMT was effective beginning January 1, 2023. Based on the current interpretation of the law and historical financial data, Edison International estimates that it will exceed the $1.0 billion threshold and be subject to CAMT on its