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Fitch Downgrades Edison Mission Energy & Midwest Generation's IDRs to 'D'

Friday, December 21, 2012 1:39 PM


Fitch Ratings has downgraded Edison Mission Energy (EME) and Midwest Generation LLC's (MWG) long-term Issuer Default Ratings (IDR) to 'D' from 'C'. The rating action reflects the Dec. 17, 2012 filing by EME and 16 of its subsidiaries for protection under Chapter 11 of the United States Bankruptcy Code.

Fitch has also affirmed EME's senior unsecured debt and Recovery Ratings at 'C' and 'RR5', respectively. Approximately $3.7 billion of long-term, senior unsecured debt is affected by the rating action. EME is a wholly-owned subsidiary of Edison International (EIX; IDR 'BBB'; Outlook Stable).

The ratings of EIX and its core operating utility subsidiary, Southern California Edison (SCE), are not affected by the rating action.

EIX has managed EME on a stand-alone basis. Fitch does not expect any direct financial exposure to result from the anticipated EME bankruptcy.

Similarly, SCE operations are separate from EIX and EME consistent with prevailing California Public Utilities Commission regulations.

'C' is the lowest rating assigned to debt instruments in Fitch's rating scale. The 'RR5' Recovery Rating is based on a recovery level of approximately 11% to 30% of principal claims by senior unsecured creditors.

For further information, please see the Fitch Wire report dated Dec. 18, 2012.

Additional information is available at 'www.fitchratings.com'. The ratings above were solicited by, or on behalf of, the issuer, and therefore, Fitch has been compensated for the provision of the ratings.

Applicable Criteria and Related Research:

--'Corporate Rating Methodology' (Aug. 8, 2012);

--'Recovery Ratings and Notching Criteria for Non-Financial Corporate Issuers' (Nov. 13, 2012);

--'Parent and Subsidiary Rating Linkage' (Aug. 8, 2012).

Applicable Criteria and Related Research:

Corporate Rating Methodology

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=684460

Recovery Ratings and Notching Criteria for Non-Financial Corporate Issuers

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=693773

Parent and Subsidiary Rating Linkage

http://www.fitchratings.com/creditdesk/reports/report_frame.cfm?rpt_id=685552

ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: HTTP://FITCHRATINGS.COM/UNDERSTANDINGCREDITRATINGS. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE.

(Source: Business Wire )
(Source: Quotemedia)

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