S&P gives Sempra notes BBB-

S&P said it assigned its BBB- issue-level rating to Sempra Energy's planned fixed-to-fixed rate reset junior subordinated notes.

“We rate the securities two notches below our BBB+ long-term issuer credit rating on Sempra to reflect their subordination and the company's ability to defer interest payments on the instruments, as defined in our criteria for hybrid securities. The interest payments are deferrable, which fulfills the deferability element. The instruments are also subordinated to all of Sempra's existing and future senior debt obligations, thereby satisfying the condition for subordination,” S&P said in a press release.

The company intends to use the proceeds to repay debt.

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