Fitch applies A- to PG&E notes

Fitch Ratings said it assigned an A- rating to Pacific Gas & Electric Co.’s (PG&E) senior unsecured notes.

The outlook is positive.

Proceeds will be used for general corporate purposes and to repay short-term debt.

Fitch affirmed the ratings of PG&E and its corporate parent, PG&E Corp. (PCG; issuer default rating BBB+, positive) on Feb. 22 and revised the outlook to positive for each.

PG&E's ratings and positive outlook reflect the agency’s expectation that the worst of the financial impact of the San Bruno pipeline explosion is over.

The California Public Utilities Commission in its April 2015 final decision in the penalty phase of the commission's San Bruno pipeline investigation ordered PG&E to pay $1.6 billion of penalties, fines and remedies. The penalty is composed of $850 million of natural gas safety spending that will not be recoverable in rates, a $400 million credit to natural gas customer bills, a $300 million fine payable to California's General Fund and an estimated $50 million of other remedies.

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