S&P gives PG&E notes BBB+

Standard & Poor's said it assigned its BBB+ corporate credit rating to PG&E Corp. and its BBB rating to the company's proposed issuance of $350 million in senior unsecured notes.

The outlook is stable.

The agency said that the company expects to infuse the net proceeds of the offering into Pacific Gas and Electric Co. (BBB+/stable/A-2) to support the utility's capital expenditure program.

PGE Corp.'s ratings reflect the consolidated credit quality of itself and its sole operating subsidiary, Pacific Gas and Electric, S&P said, noting that the senior unsecured debt ratings are notched below the unsecured ratings it assigns to the utility, reflecting structural subordination that exists for parent debtholders, given the significant amount of debt at the utility.

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