S&P; Boosts SCE’s Credit Rating to ‘BB’

Southern California Edison Co., California’s second-largest utility, had its corporate credit rating raised 10 notches to “BB” by Standard & Poor’s after developing a recovery plan to pay off past defaults.

The utility, a unit of Edison International, on Friday used cash on hand and $1.8 billion of borrowing to erase $5.5 billion in debts it ran up during the state’s energy crisis in 2001. The rating fell to “D” last year, the lowest level by Standard & Poor’s, after the utility missed payments on $930 million of notes and commercial paper. The new rating is two notches below investment-grade.