...Southern California Gas Co.'s ratings and Outlook are supported by a large customer base, a conservative capital structure and solid credit metrics. Capex spending peaked at $1.5 billion in 2018 and Fitch Ratings expects it to decline to an average of $1.3 billion (midpoint guidance). Reasonable outcomes in the 2019 general rate case (GRC) and cost of capital (CoC) filing are additional rating factors. Fitch believes maintaining SoCalGas's credit ratings remains in the best interest of Sempra Energy (BBB+/Stable) and regulators. However, SoCalGas is not immune to contagion risks from San Diego Gas & Electric Co. (SDG&E; BBB+/Negative) and Sempra. Failure in addressing SDG&E's wildfire recovery risks and negative rating actions on Sempra could pressure SoCalGas's ratings....
