Moody’s assigns Sempra preferreds Ba1

Moody’s Investors Service said it assigned a Ba1 rating to Sempra Energy’s series C fixed-rate reset cumulative redeemable perpetual preferred stock.

“The Ba1 rating assigned to Sempra’s preferred stock reflects the security’s relative position in the company’s capital structure compared to its senior unsecured debt. The preferred stock is subordinated, and junior in right of payment, to Sempra’s senior unsecured and junior subordinated debt. The two-notch rating differential between the preferred stock and Sempra’s Baa2 senior unsecured rating is consistent with our methodology guidance for notching corporate instrument ratings based on differences in security and priority of claim,” Moody’s said in a press release.

Sempra intends to use the proceeds for working capital and other general corporate purposes, which may include debt repayment.

The outlook is stable.

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