Moody's cuts Edison Mission

Moody's Investors Service said it lowered the long-term ratings of Edison Mission Energy and its subsidiary, Midwest Generation Co., LLC, including Edison Mission's corporate family rating and probability of default rating to B1 from Ba3.

Moody's said it also affirmed Edison Mission's speculative-grade liquidity rating at SGL-3 and assigned a B1 rating to the company's senior secured credit facility that expires in 2012.

The outlook is stable.

The downgrade reflects its expectation that 2009 and 2010 earnings and cash flow are likely to be weaker than historical levels due to reduced electric demand, lower commodity prices for electricity, and a largely unhedged electric output portfolio, Moody's said.

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