Fitch rates Sempra convertibles A

Fitch Ratings assigned an A rating to the senior notes embedded in the equity units to be issued by Sempra Energy. The outlook is stable.

Fitch noted that while Sempra has the option to defer contract adjustment payments until the equity purchase date, interest on the senior notes may not be deferred.

Sempra Energy's ratings reflect the company's conservative capital structure, solid cash flow from operations, and the large and prosperous customer franchises of its utility subsidiaries Southern California Gas and San Diego Gas & Electric, Fitch said.

While the California regulatory and political environment remains unsettled, Sempra's utilities face considerably lower financial and business risk than other investor-owned utilities in the state and have demonstrated strong financial performance, the rating agency added.

The ratings also consider the risks associated with Sempra's increasing focus on unregulated businesses, such as power generation and a growing energy marketing and trading business. For the year-ended Dec. 31, 2001, the California utilities together contributed 64% of net income, while energy trading, non-regulated generation, and other lines of business contributed approximately 36%.

S&P rates Parmalat exchangeables BB

Standard & Poor's assigned a BB rating to Parmalat Soparfi SA's €256.8 million 6.125% exchangeable callable bonds due 2032.

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