Research Update: Infraestructura Energetica Nova Global Scale Rating Outlook Revised To Negative From Stable On Similar Action On Parent

We recently revised the outlook on Sempra Energy, the controlling party of IEnova, to negative from stable reflecting our view that bill SB 901 is a short-term measure for utilities to recover wildfire-related costs and further longer-term reform is necessary in California. Absent a long-term improvement in the regulatory compact, we would likely downgrade Sempra by one notch. We consider IEnova as a moderately strategic subsidiary for its parent and incorporate in our final ratings the potential support IEnova could receive from Sempra if necessary. Therefore, because of their intrinsic relationship, we're also revising our outlook on the Mexico-based natural gas pipeline and power plant operator. In addition, we're affirming our 'BBB' issuer credit rating on the company and on

...+ We recently revised the outlook on Sempra Energy, the controlling party of IEnova, to negative from stable reflecting our view that bill SB 901 is a short-term measure for utilities to recover wildfire-related costs and further longer-term reform is necessary in California. Absent a long-term improvement in the regulatory compact, we would likely downgrade Sempra by one notch. + We consider IEnova as a moderately strategic subsidiary for its parent and incorporate in our final ratings the potential support IEnova could receive from Sempra if necessary. + Therefore, because of their intrinsic relationship, we're also revising our outlook on the Mexico-based natural gas pipeline and power plant operator. In addition, we're affirming our '###' issuer credit rating on the company and on its notes. We also lowered our national scale rating to 'mxAA+' from 'mxAAA' on the company and on its notes (certificados bursßtiles) IENOVA 13. However, our view on the company's stand-alone credit quality...

Research Update