Fitch affirms Edison Mission Energy

Fitch Ratings said it affirmed Edison Mission Energy's long-term issuer default rating at B, short-term issuer default rating at B and senior unsecured debt at B- with a recovery rating of RR5, along with Midwest Generation LLC's long-term issuer default rating at B, short-term issuer default rating at B and secured working capital facility at BB with a recovery rating of RR1.

The outlook is negative.

The ratings are based on a stand-alone credit analysis and assume no future support from ultimate parent, Edison International, Fitch said.

The ratings also reflect weak credit metrics due to sharply lower power prices and contracting dark spreads, the agency said.

The negative outlook reflects a view that lower-than-expected wholesale power prices during the forecast period could result in future credit rating downgrades, Fitch said.

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