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PG&E Gets Second Junk Grade After Moody's Credit Downgrade

  • Moody’s cuts company to B2, following S&P downgrade this week
  • Ratings moves will force electric company to post collateral
A Pacific Gas and Electric (PG&E) truck sits parked on a street on June 18, 2018 in San Francisco, California.

Photographer: Justin Sullivan/Getty Images

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Moody’s Investors Service cut PG&E Corp.’s credit rating to junk citing the electric company’s potential wildfire liabilities, a step that will force the company to post cash collateral and move it out of the biggest investment-grade bond index.

The credit grader lowered PG&E’s rating by five notches, to B2 from Baa3, and the utility Pacific Gas & Electric rating four levels to Ba3, according to a statement. The bond grader said it may cut the company further. PG&E’s shares and bonds fell.