No. of Recommendations: 2
Get hold of the prospectus for the EME bond issue and read it carefully. You will probably find that the EME bond is supported by specific assets, and not by the full faith and credit of EIX. Or at least that other liabilities have higher claim on whatever assets.

Bond rating agencies are experts at creating the ratings. A rating of less than investment grade indicates they could not find assets to refund the bond. Getting repaid at maturity depends either on the success of the business venture the funds were invested in or the ability of the company to get new financing when the bond comes due.

Most would trust the rating agencies.
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