Red Flags Detected

• ⚠ The Bonds Will Not Be Insured or Guaranteed By Sce... the Bonds Will Be Nonrecourse Obligations, Secured Only By the Collateral. (new) — The bonds are non-recourse and payable solely from fixed recovery charges, exposing investors to collection and legal risks without recourse to SCE's general assets.
• ⚠ The Bankruptcy of Sce or Any Successor Seller Might Result In Losses or Delays In Payments On the Bonds (new) — SCE's bankruptcy could disrupt payments due to recharacterization of the sale, commingling of funds, or automatic stays, leaving bondholders with unsecured claims.
• ⚠ The Servicer Will Commingle the Fixed Recovery Charges With Other Revenues IT Collects (new) — Commingling of fixed recovery charges with servicer funds may obstruct bondholders' access to those funds in a servicer bankruptcy, reducing recovery prospects.
• ⚠ The Wildfire Financing Law As Well As the Financing Order May Be Challenged In Court. (new) — Legal challenges to the Wildfire Financing Law or the financing order could impair the recovery property and reduce or eliminate the fixed recovery charges that repay the bonds.
• ⚠ More Widespread Use of Distributed Generation, Particularly Battery Storage, Might Allow Greater Numbers of Customers to Reduce or Eliminate Their Payment of Fixed Recovery Charges (new) — Increased adoption of distributed generation could reduce the customer base paying fixed recovery charges, shifting the burden to remaining customers and potentially affecting collections.