Fitch affirms PG&E

Fitch Ratings said it affirmed Pacific Gas & Electric Co.'s long-term issuer default rating at A-, senior unsecured notes at A, preferred stock at A-, short-term issuer default rating at F1 and commercial paper at F1.

The outlook is stable.

The affirmation considers the utility's strong, relatively predictable earnings and cash flows and a balanced regulatory/political environment in California, according to the agency.

Ratings reflect confidence in PG&E's ability to effectively execute, finance and recover its large, projected capital spending budget, which is expected to be about $11 billion through 2011, the agency said.

Ratings also assume that regulatory mechanisms will continue to facilitate timely collection of power supply and other costs and a reasonable return on invested capital, the agency noted.

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