S&P affirms Sempra Energy

Standard & Poor's said affirmed Sempra Energy's BBB+ corporate credit rating, BBB+ senior unsecured debt rating and A-2 commercial paper rating. S&P also affirmed the ratings of Sempra's utility subsidiaries Southern California Gas Co. and San Diego Gas & Electric, including their A corporate credit ratings, A+ senior secured debt ratings, A- senior unsecured debt ratings, BBB+ preferred stock ratings and A-1 commercial paper ratings.

The outlook is stable.

The affirmation incorporates Sempra's liquefied natural gas plans and reflects the continued strong financial performance of all its business units, the agency said.

The BBB+ rating reflects the consolidated credit profile of Sempra Energy, its utility subsidiaries and the various unregulated ventures under Sempra Energy Global Enterprises

The principal near-term threat to credit quality is from ongoing litigation, including the Continental Forge anti-trust trial, which charges Sempra energy and its utilities with conspiring with El Paso to restrict the supply of natural gas during California's energy crisis in 2000-2001. S&P said no financial impact from the litigation is currently factored into the rating, with litigation risk being treated purely as a contingent liability.

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