S&P lowers San Diego Gas

S&P said it lowered its issuer credit rating on San Diego Gas & Electric Co. to A- from A. The outlook is negative.

At the same time, S&P lowered the ratings on the company's unsecured debt to A- from A, the first-mortgage bonds to A from A+ and the short-term debt to A-2 from A-1. In addition, S&P lowered the rating on the company's preferred stock to BBB from BBB+.

“The downgrade reflects the unaddressed longer-term risks associated with inverse condemnation. Although the California Legislature's approval of SB 901 addresses many of the near-term risks associated with wildfire costs borne by utilities, it does not deal with the longer-term issue of inverse condemnation,” S&P said in a news release.

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