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SOUTHERN CALIFORNIA EDISON CO. SENIOR DEBT, PREFERRED LOWERED TO 'A+' BY FITCH -- FITCH FINANCIAL WIRE --

 NEW YORK, Nov. 24 ~PRNewswire~ -- Southern California Edison Co.'s $4 billion first and refunding mortgage bonds and $558 million cumulative preferred stock are lowered to 'A+' from 'AA' by Fitch. The securities are removed from FitchAlert, where they were placed with negative implications on Nov. 13. The credit trend is declining.
 A decision Monday by the California Public Utilities Commission (CPUC) will prevent the realization of stronger quantitative measures commensurate with the 'AA' category. The CPUC action will result in an estimated $106 million decline in 1993 revenues and an earnings reduction of approximately $43 million. The downgrade also reflects a steady erosion of financial protection measures that are lower than those normally associated with the former ratings, and a significantly weakened economic environment in the state as well as in Edison's service territory. Although financial protection measures are expected to decline, they will be adequate to maintain the new ratings.
 The commission reduced the rate of return on common equity to 11.80 percent from 12.65 percent and did not recognize Edison's efforts to build equity, which is now 47 percent of capitalization. The CPUC maintained the capital structure for ratemaking purposes at 46 percent equity, 6 percent preferred, and 48 percent debt.
 In its annual cost of capital filing on May 8, Edison had requested a $55 million revenue increase, subsequently reduced to $41 million, to become effective on Jan. 1, 1993. The increase was based on raising the allowed return on common equity to 13.05 percent from 12.65 percent, the common equity ratio to 48 percent from 46 percent, and the preferred stock ratio to 7 percent from 6 percent.
 The CPUC action adopts a recommendation by an Administrative Law Judge (ALJ) on Oct. 23 in response to this filing. Edison's request was premised on growing investor concern about its total debt burden, including purchase power, and general risk trends in the industry. However, the ALJ argued that no additional equity support is necessary since purchase power contracts have no impact on the company's balance sheet. Edison is an SCEcorp subsidiary.
 -0- 11~24~92
 ~CONTACT: Stephen Fedun, 212-908-0568, of Fitch~


CO: Southern California Edison Co. ST: California IN: UTI SU: RTG

LR -- NY023 -- 0964 11~24~92 10:24 EST
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Date:Nov 24, 1992
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