SoCal Gas' excellent business risk profile and strong stand-alone credit metrics; Fairly supportive regulatory environment in California; and Parent Sempra Energy's philosophy toward nonregulated businesses emphasizes contractual cash flows and eschews commodity exposure. Sempra Energy's aggressive growth plans as a natural gas infrastructure company; High capital expenditures related to the California utilities' infrastructure, resource adequacy, and renewable energy initiatives; and Weak fundamentals for the U.S. natural gas, power, and liquefied natural gas markets. Standard&Poor's Ratings Services' ratings on Southern California Gas Co. (SoCal Gas) are based on parent Sempra Energy's consolidated credit profile. The rating on Sempra reflects its consolidated credit profile, including SoCal Gas and San Diego Gas&Electric (SDG&E), as well as the various unregulated
