S&P upgrades PG&E

S&P said it raised its issuer credit rating PG&E Corp. and its subsidiary Pacific Gas & Electric Co. to BBB+ from BBB. The outlook is positive.

S&P also raised the issue-level rating on PG&E Corp.'s senior unsecured debt to BBB from BBB- and the issue-level rating on Pacific Gas & Electric Co.'s senior unsecured debt to BBB+ from BBB. S&P also raised the rating of Pacific Gas & Electric Co.'s preferred stock to BBB- from BB+.

“The upgrade reflects the company's continued steps to improve its business risk profile since the 2010 San Bruno gas transmission explosion. We now view the company at the higher-end of the strong business risk profile category.

“The maximum $3 million fine from the federal criminal trial is significantly below initial estimates of possibly more than $1 billion. In addition, the company has implemented interim rates of $193 million in its gas transmission and storage rate case, entered into a joint proposal to retire Diablo Canyon Nuclear Power Plant at the expiration of its current operating licenses in 2024 and 2025, and filed an $88 million settlement agreement in its electric and gas general rate cases,” said S&P credit analyst Gabe Grosberg in a news release.

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