Standard&Poor's Ratings Services bases its ratings on Southern California Gas Co. (SoCal Gas) on parent Sempra Energy's consolidated credit profile. The rating on Sempra reflects its consolidated credit profile, including SoCal Gas and San Diego Gas&Electric (SDG&E), as well as the various unregulated ventures under Sempra Global. The nonutility businesses include liquefied natural gas terminals, pipelines, gas storage, electric generation, RBS Sempra Commodities, and energy-related investments in Mexico and South America. We deem regulation in California as exceptionally supportive of credit quality, which allows us to notch up the corporate credit ratings of SDG&E and SoCal Gas from those of the parent and its unregulated subsidiaries. As a result of our view on regulatory insulation and
