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
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.