S&P: PG&E on watch

Standard & Poor's said it placed the ratings on Pacific Gas and Electric Co. and PG&E Corp. on CreditWatch with negative implications.

The CreditWatch follows the rupture of a 30-inch steel gas transmission pipeline owned and operated by Pacific Gas and Electric on Sept. 9, the agency said.

The company noted that an explosion in the residential community it serves in San Bruno, Calif., has damaged at least 45 homes and that fatalities have occurred.

The company disclosed in its filing that it has $992 million in liability insurance, S&P said.

Resolution of the CreditWatch is dependent on several factors, including the ultimate cost responsibility of this incident to the utility and the parent, an assessment of any reputational damage to PG&E, repercussions with the California Public Utility Commission with regard to safety and other elements and the utility's potential need to upgrade aging infrastructure throughout its system, the agency said.

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