Standard&Poor's Ratings Services' ratings on Southern California Gas Co. (SoCal Gas) are based on its credit profile, which is influenced by parent company Sempra Energy Inc. Sempra includes subsidiaries SoCal Gas, San Diego Gas&Electric Co. (SDG&E), Luz del Sur in Peru, Chilquinta Energia in Chile, and unregulated operations in Mexico. The holding company has full access to the assets and cash flow of other unregulated operations in the U.S. The nonutility businesses include liquefied natural gas (LNG) terminals, pipelines, gas storage, electric generation, and energy-related investments in Mexico and South America. Utility regulation in California is "more credit supportive" under our regulatory assessment criteria. As a result of regulatory insulation and Sempra's inability to fully access
