Standard&Poor's Ratings Services determines Southern California Gas Co.'s (SoCal Gas) corporate credit rating from parent Sempra Energy's consolidated credit profile. The ratings on Sempra Energy and its wholly owned utility subsidiaries SoCal Gas and San Diego Gas&Electric Co. (SDG&E) reflect the utilities' consolidated profile and the unregulated ventures, which include energy trading, liquefied natural gas (LNG) terminals, electric generation, and energy-related investments in Mexico and South America. Regulation in California, which, among other things, mandates that SoCalGas maintain a 49% equity layer, provides sufficient insulation to separate modestly the corporate credit ratings of the utilities from those of the parent and unregulated subsidiaries. While the utilities are an important, stabilizing influence on Sempra's credit quality, we
