The corporate credit rating on Southern California Gas Co. (SoCal Gas) reflects reflects the consolidated credit profile of holding company Sempra Energy (Sempra), its utility subsidiaries, SoCal Gas itself and San Diego Gas&Electric (SDG&E), and the various unregulated ventures under Sempra Energy Global Enterprises (Global), which include energy trading, merchant generation, LNG terminals and energy-related investments in Mexico and South America. Regulation in California, which mandates that the utilities maintain a 48% equity layer, provides sufficient insulation to separate the corporate credit ratings on the utilities from those of the parent and unregulated subsidiaries, which have a corporate credit rating of 'BBB+'. As a consequence of this restriction, the financial profile at the utility is significantly superior to
