Standard&Poor's Ratings Services' ratings on Southern California Gas Co. (SoCal Gas) are based 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, 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 our corporate credit ratings on SDG&E and SoCal Gas from those on the parent and its unregulated subsidiaries. As a result of our view of regulatory insulation and Sempra's inability to
