Southern California Gas Co. (SoCal Gas) is a wholly owned subsidiary of Sempra Energy (Sempra). The ratings on Sempra Energy and its wholly owned utility subsidiaries SDG&E and SoCal Gas reflect the consolidated profile of the utilities and the unregulated ventures, which include energy trading, merchant generation, and energy-related investments in Mexico and South America. The consolidated rating incorporates Sempra's liquefied natural gas (LNG) plans and reflects the continued strong financial performance of all its business units. The principal near-term threat to credit quality is from ongoing litigation. No financial impact from the litigation is currently factored into the rating, with litigation risk being treated purely as a contingent liability. Regulation in California, which, among other things, mandates that the
