(San Francisco, CA) - Credit
rating agency Standard and Poor's today notified PG&E Corporation
and the PG&E National Energy Group that it has placed the PG&E NEG
on Credit Watch Negative and downgraded the unit's credit rating
from BBB to BB+. Additionally, S&P has informed PG&E Corporation
that it has made credit ratings and Credit Watch revisions to the
following PG&E NEG operating units. PG&E Energy Trading Holdings
LLC has been placed on Credit Watch Negative and its credit rating
revised from BBB+ to BB+. USGen New England, Inc. has been placed
on Credit Watch Negative and its credit rating has been revised
from BBB- to BB+. PG&E Gas Transmission, Northwest Corporation has
been placed on Credit Watch Negative and its credit rating has been
revised from A- to BBB+.
While disappointing, these
revisions to the credit ratings and credit outlook for portions
of our business are in keeping with the credit agency's larger overall
industry review, PG&E Corporation said. S&P's notice of the downgrades
stated they were being made in part as a result of adoption of recently
revised "more robust" rating methodologies that are being applied
"across the board to this sector" to evaluate credit risk. Since
January 1, 2002, S&P has revised downward the credit ratings of
78 energy holding companies and operating subsidiaries principally
reflecting current challenging market conditions in the energy sector.
PG&E Corporation said that
it will discuss further its plans to address the S&P downgrades
during the Corporation's previously scheduled second quarter earnings
call which will now take place on Thursday, August 1 at 5:30 a.m.
(PDT) 8:30 a.m. (EDT). The call was originally scheduled to take
place at 8:00 a.m. (PDT) 11:00 a.m. (EDT). The call will be available
via webcast at www.pgecorp.com.