Fitch revises PG&E to positive

Fitch Ratings said it affirmed the short- and long-term issuer default ratings and securities ratings of PG&E Corp. (PCG) and its primary operating utility subsidiary, Pacific Gas & Electric Co. (PG&E), at BBB+.

The outlooks were revised to positive from stable.

Roughly $16.7 billion of consolidated PCG debt is affected by the action.

Fitch said the affirmations and outlook revisions reflect its expectation that the worst of the financial impact of the San Bruno pipeline explosion is over. The California Public Utilities Commission in its April 2015 final decision in the penalty phase of the commission's San Bruno pipeline investigation ordered PG&E to pay $1.6 billion of penalties, fines and remedies.

The $1.6 billion is composed of $850 million of natural gas safety spending that will not be recoverable in rates, a $400 million credit to natural gas customers, a $300 million fine payable to California's General Fund and an estimated $50 million of other remedies.

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