S&P affirmed PG&E

Standard & Poor's said it resolved the negative CreditWatch listing for PG&E Corp. and its subsidiary, Pacific Gas and Electric, and affirmed the parent and utility corporate credit ratings at BBB+.

The outlook is stable.

The ratings were placed on CreditWatch with negative implications in September after an accident in San Bruno, Calif., caused by the rupture of a PG&E 30-inch gas transmission pipeline, S&P said.

The explosion of the 54-year-old pipeline caused a massive fire in a primarily residential area located just south of San Francisco.

The watch listing reflected uncertainty regarding the ultimate costs of the San Bruno blast, the potential reputational damage to the utility and the possibility that the incident could weaken the utility's constructive regulatory support, which is a critical underpinning for the ratings, the agency said.

The resolution of the CreditWatch reflects greater certainty around the cost estimates relating to the accident, as well as an expectation that these costs will be manageable for the company, S&P said.

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