Fitch lowers San Diego Gas

Fitch Ratings said it downgraded San Diego Gas & Electric Co.'s long-term issuer default rating to A- from A and downgraded its senior secured rating to A+ from AA-.

The agency also downgraded its short-term issuer default rating to F2 from F1.

The outlook is stable.

Fitch said it believes that the continuation of inverse condemnation, execution risk associated with the implementation of the proposed legislation, pressure on customer bills if cost recovery is approved in event of a major wildfire and diminishing access to insurance will permanently overshadow the company’s credit profile.

Senate Bill 901 and San Diego Gas’ fire prevention and mitigation programs only provide partial mitigation of the rising regulatory risks for electric utilities operating in California, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.