Sempra Energy expecting debt to increase, ratings to remain stable

By Jennifer Lanning Drey

Savannah, Ga., March 23 - Sempra Energy's five year capital program is expected to increase its debt level, but the company intends to remain an investment-grade issuer, Mark Snell, its chief financial officer, said during a company analyst presentation Wednesday.

Sempra expects to have $14.8 billion of debt at Dec. 31, 2015, up from debt of $9.5 billion at Dec. 31, 2010.

Snell acknowledged the higher leverage but said also noted that Sempra's cash flow coverage will improve over the five-year period, which he said he believes will be important to the ratings agencies.

"We think this is a very strong capital structure, and we certainly should maintain our current ratings or at least stay in the triple-B area," he said.

The CFO later clarified that Sempra does not intend to drop below a triple-B rating.

Sempra has a $15 billion capital program planned for the next five years.

Based in San Diego, Sempra is a utility company.

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