Moody's downgrades PG&E's credit rating

Jan 10 (Reuters) - Moody's on Thursday cut PG&E Corp's credit rating to B2 from Baa3, citing a challenging environment for the California power provider as potential liabilities grow, liquidity reserves decline and access to capital becomes more uncertain.

Moody's said its ratings remain on review for a downgrade and comes on the heels of a downgrade by S&P.

S&P cut the rating on PG&E and its Pacific Power & Gas Co unit on Monday to "B" from "BBB-," the lowest tier of so-called investment-grade ratings.

Reuters reported on Friday, citing sources, that the utility company was exploring filing for bankruptcy protection. The company was considering the move, for some or all of its businesses, as it faces billions of dollars in liabilities related to wildfires. (Reporting by Arundhati Sarkar in Bengaluru; Editing by Maju Samuel)


More Related News

PG&E Is Said To Ready $11 Billion Debt Financing Plan
PG&E Is Said To Ready $11 Billion Debt Financing Plan

U.S. utility PG&E Corp. (PCG) is said to be preparing a $11 billion debt-financing package as it embarks on a plan to exit from its bankruptcy, an investor involved with the company's funding plan told Reuters on Friday. Shares jumped 5.5% to close at $12.52.According to George Schultze, founder of Schultze Asset Management, which invests in distressed securities, the debt financing plan, which will consist of high-yield bonds and term loans, is part of the company's previously announced plan to raise as much as $27 billion in funding from future public offerings. It includes $4 billion of high-yield bonds and a $750 million term loan led by JPMorgan Chase & Co., Bloomberg said in a...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply


Top News: Economy