SAN FRANCISCO - Pacific Gas and Electric Company today issued the following statement after Moody's Investors Service upgraded the company's credit rating to investment grade level at Baa3 and assigned a prospective investment grade level of Baa2 to the company's senior secured debt that would be issued as part of the Chapter 11 financing plan. Moody's prospective rating would become effective upon closing of the company's senior secured debt financing:

"Moody's announcement is another positive development in PG&E's effort to complete the necessary exit financing to implement the plan of reorganization."

Moody's also upgraded the company's preferred stock to Ba2 from B1 and assigned a Baa2 rating to the company's $850 million secured bank revolving credit facility that has also been arranged as part of the company's exit financing plan. In its press release, the rating agency stated that the rating outlook for the company is stable.