Company: SCE-PL
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000827052-25-000100
Chunk: 88

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-10-28
Form: 10-Q
Item: Item 7
Chunk 88
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 markets. SCE's overall cash flows fluctuate based on, among other things, its ability to recover its costs in a timely manner from its customers through regulated rates, changes in commodity prices and volumes, collateral requirements, interest obligations, dividend payments to and equity contributions from Edison International, obligations to preference shareholders, and the outcome of tax, regulatory and legal matters.

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In the next 12 months, SCE expects to fund its cash requirements through operating cash flows, capital market and bank financings, and wildfire-related cost recoveries through securitization financings. SCE also has availability under its credit facility and agreements with lenders to issue bilateral unsecured standby letters of credit to fund cash requirements. SCE may issue additional debt for general corporate purposes.

In April 2025, SCE requested approval from the CPUC to securitize approximately $1.6 billion of cost recoveries authorized under the TKM Settlement Agreement. In August 2025, the CPUC issued an irrevocable order authorizing SCE to finance the amount through the issuance of securitized bonds. For further details, see "Management Overview—Southern California Wildfires and Mudslides."

During the nine months ended September 30, 2025, SCE issued a total of $3.0 billion of first and refunding mortgage bonds. For further details, see "Notes to Condensed Consolidated Financial Statements—Note 5. Debt and Credit Agreements."

Following the passage of SB 254 in September 2025, Moody's reaffirmed SCE's long-term issuer credit rating and outlook, and Fitch also reaffirmed SCE's credit rating and revised its outlook from ratings watch negative to stable. However, S&P downgraded SCE'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 SCE's current long-term issuer credit ratings and outlook from the major credit rating agencies as of October 21, 2025:

Moody'sFitchS&PCredit RatingBaa1BBBBBB-OutlookStableStableNegative

SCE'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,