Lower-risk, regulated, natural gas distribution company (LDC) operations offer a stable base of earnings and cash flow. Effective management of regulatory risk. The Aliso Canyon natural gas leak does not have a longer-term impact on the company's business risk profile. Good mix of mostly residential and commercial customers. Financial ratios are measured against our most relaxed benchmarks. Financial measures consistent with the higher end of the range for the intermediate financial risk profile category. Robust capital spending. The stable outlook on Southern California Gas Co. (SCG) incorporates the minimal cushion for the current rating at parent Sempra Energy. This reflects Sempra's consolidated financial measures that are currently at the lower-end for the financial risk profile, offset by our expectations that
