S&P: PG&E view to negative

Standard & Poor's said it revised the outlook to negative from stable on PG&E Corp. and Pacific Gas & Electric Co.

S&P also said it affirmed the BBB corporate credit ratings on PG&E and Pacific Gas & Electric.

The outlook revision reflects a view that there is a one-in-three probability that both the company's business and financial risk profiles could weaken during the next 12 months and, if sustained, could result in a lower rating, said Gabe Grosberg, an S&P analyst.

In recent comments with regard to potential San-Bruno related penalties, a senior PG&E executive noted that under certain circumstances there exists the remote possibility of a bankruptcy filing if the company can't raise sufficient capital, Grosberg said.

This outcome is viewed as highly unlikely based on current information. Nevertheless, the comments are revealing because they raise the probability that, at some point, the company's willingness or ability to issue equity for the full amount of out-of-pocket costs and fines could be limited, the analyst said.

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