Moody's confirms Edison

Moody's Investors Service said it confirmed the senior unsecured debt rating of Edison Funding Co. at Ba1.

The outlook is stable.

Moody's said the rating confirmation reflects Edison's reliance on cash received through the operation of tax allocation agreements among the company, its ultimate parent, Edison International and other subsidiaries.

The rating also incorporates uncertainty that relates to an Internal Revenue Service audit, which is focused on three leverage lease transactions entered into by Edison in the mid-1990s. While the audit may not be resolved in the near term, Moody's believes that a negative outcome could impact Edison's future cash flows, given the size of the leveraged lease investments that are under scrutiny.

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