...Sempra Energy's ratings and Outlook are supported by its diversified investments in stable regulated utilities in California, Texas and South America, as well as long-term contracted energy infrastructure assets. The acquisition of equity ownership in Oncor Electric Delivery Company (Oncor; BBB+/Stable) enhanced Sempra's business profile and diversification. However, Sempra is facing several challenges and its credit profile is expected to evolve in the next two years in light of the portfolio optimization and activist involvement. Sempra's rating stability depends upon successfully completion of Cameron liquefied natural gas (Cameron LNG) project, which is experiencing cost overrun and delays. Other challenges include effectively managing the political and judicial landscape in California, especially associated with wildfire risks. Activist investors' involvement is generally negative from a credit perspective and will likely increase, in Fitch Ratings' view, although the recent cooperation...
