S&P: Sempra outlook stable

Standard & Poor's said it revised the outlook on Sempra Energy and its wholly owned utility subsidiaries to stable from negative and affirmed its BBB+ corporate credit rating.

The agency said the outlook revision is based on its view that the company's financial policies are unlikely to become more aggressive over the next several years, particularly given near-term capital spending and growth plans that focus on infrastructure growth at the regulated utilities.

The previous negative outlook largely reflected concerns over Sempra's increasing business and financial risk resulting from the Energy South acquisition in July 2008. S&P said that although it believes that Sempra is unlikely to substantially increase leverage over the next several years and will maintain a relatively low-risk business profile, the agency still expects the company to pursue additional investments outside of its core utilities business over the long term.

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