S&P; Lowers PG&E; Trading Unit’s Rating

ENERGY

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Standard & Poor’s cut its rating for PG&E; National Energy Group Inc., the energy-trading unit of California’s PG&E; Corp., and said the unit might default on a $431-million debt payment and seek bankruptcy protection.

S&P; cut its corporate credit rating for PG&E; National Energy and three of its units five notches to B-minus, its sixth-highest “junk” grade, from BB-plus. It also cut two other National Energy units and said more downgrades are possible.