Ratings Lowered On Four LOC-Supported Bond Issues; Two Ratings Affirmed

NEW YORK (S&P Global Ratings) Dec. 6, 2018--S&P Global Ratings today lowered 
its ratings on four bond issues related to Pacific Gas & Electric Co. and 
supported by letters of credit (LOC). At the same time, we affirmed the 
ratings on California Pollution Control Financing Authority's series 1997B and 
1996F.

Today's rating actions reflect the Nov. 15, 2018, lowering of our long- and 
short-term issuer credit ratings on Pacific Gas and Electric Co.to 'BBB-/A-3' 
from 'BBB/A-2'. We also placed the ratings on CreditWatch with negative 
implications.

The long- and short-term components of our ratings on California Pollution 
Control Financing Authority's series 1996C, 1996E, 1996F, and 1997B and on 
California Infrastructure and Economic Development Banks's series 2009A and 
2009B bonds are based on our long- and short-term ratings on, as well as the 
joint support provided by, Pacific Gas & Electric Co., the obligor, and 
various LOC providers, assuming a low correlation level between the LOC 
providers and obligor.

The following entities serve as LOC providers for these bonds:
  • Mizuho Bank Ltd. ('A/A-1') for the series 1996C bonds;
  • Sumitomo Mitsui Banking Corp. ('A/A-1') for the series 1996E bonds;
  • TD Bank N.A. ('AA-/A-1+') for the series 1996F bonds;
  • Canadian Imperial Bank of Commerce ('A+/A-1') for the series 1997B bonds; and
  • MUFG Union Bank N.A. ('A/A-1') for the series 2009A and 2009B Bonds.
The long-term components of our ratings address our expectation of full and 
timely interest and principal payments when the bondholders have not exercised 
the put option. The short-term components of our ratings address our 
expectation of full and timely interest and principal payments when the 
bondholders have exercised the put option.
Changes to our ratings on these bonds can result from, among other things, 
changes to our ratings on the support providers, changes to our correlation 
assumptions, expiration or termination of the LOCs, or amendments to the 
transactions' terms.
We will maintain our ratings on the bonds as long as they are in the rated 
modes and the LOCs have not expired or otherwise terminated. If either of 
these conditions change, we will likely withdraw our ratings.