S&P revises PG&E outlook to stable

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

At the same time, the agency affirmed its ratings, including the BBB issuer credit ratings, on PG&E and its subsidiary.

"We base the stable outlook on the company's newer management team that has consistently met its public commitments of issuing sufficient common equity to maintain its regulated capital structure," S&P credit analyst Gabe Grosberg said in a news release.

The company has issued about $2.6 billion of common equity over the past three years, and the agency expects that incremental sufficient equity will be issued as necessary.

Because of management's continued and consistent commitment to credit quality, S&P expects that the financial measures will be maintained within the "significant" financial risk profile category, despite the California Public Utilities Commission's order that assesses PG&E with a record high utility penalty because of the San Bruno gas transmission explosion.

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