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Edison International’s Bonds Extend Drop as LA Wildfires Rage On
Edison International’s bonds weakened on Monday relative to Treasuries, extending a week of losses, after wildfires raged in Southern California where the company’s electric utility is based.
(Bloomberg) -- Edison International’s bonds weakened on Monday relative to Treasuries, extending a week of losses, after wildfires raged in Southern California where the company’s electric utility is based.
Risk premiums on Edison International’s debt broadly widened, with bonds at the holding company performing worse than secured debt at the utility. It’s 4.95% senior unsecured bonds maturing in April widened 270 basis points to 348 basis points as of 01:02 p.m. in New York, according to Trace. It’s 5.75% bonds due in 2027 widened 76 basis points to 198 basis points.
Meanwhile, spreads on notes issued by Southern California Edison are holding much better. The utility’s 5.2% first lien bonds maturing in 2034 widened 19 basis points to 114 basis points.
Los Angeles and the rest of Southern California are facing a second week of fierce winds that are exacerbating wildfires. Edison International has filed two incident reports related to the current wildfires with the California Public Utilities Commission, according to a statement Sunday. Preliminary analysis of transmission lines in the Eaton Canyon area showed no anomalies prior to the fire, said the company.
While the incident reports are a “negative credit development and we acknowledge that the situation can change in an instant,” previous legislative actions taken to preserve the financial health of California utilities are reassuring, GimmeCredit analyst Carol Levenson wrote in a note Monday.
Rosemead, California-based Edison International said it’s also contributing $1 million to community-based organizations to support relief efforts and assist those affected by the wildfires. Southern California Edison delivers electricity to 15 million people across Southern, Central and Coastal California.
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Business NewsCompaniesEdison International’s Bonds Extend Drop as LA Wildfires Rage On
First Published:14 Jan 2025, 12:38 AM IST
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