Moody’s might cut Sempra Energy

Moody's Investors Service said it placed the ratings of Sempra Energy, including its Baa1 senior unsecured and issuer rating, on review for downgrade.

The Prime-2 short-term commercial paper rating of Sempra Global is not on review and its outlook is stable.

"The review is prompted by the increased leverage to fund the acquisition of a majority stake in Oncor Electric Delivery Co. LLC and uncertainty regarding the timing and extent of potential recovery in Sempra's consolidated financial metrics," Natividad Martel, Moody’s vice president, senior analyst, said in a news release.

"The review also considers the recent overture from an activist investor that Moody's believes heightens the execution risk associated with any initiatives that Sempra may undertake in order to improve its credit quality."

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