S&P lifts PG&E to positive

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

The agency also said it affirmed the BBB issuer credit ratings on both companies.

The positive outlook is based on expectations that PG&E’s financial measures will continue to consistently remain at the higher end of the range for the significant financial risk profile category, S&P said.

The company also is expected to improve on its safety record, strengthen its reputation with all of its stakeholders and make material strides toward resolving the outstanding issues from the San Bruno pipeline explosion, the agency said.

This includes resolving the allegations of improper communications between the company and the California Public Utility Commission and the U.S. Department of Justice’s indictment against the company on criminal charges, S&P said.

Effective resolution of these issues would improve the company’s business risk profile and could result in a higher rating, the agency said.

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