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)
PG&E Corp. shares . Year-to-date, PCG has declined -25.22%, versus a 3.59% rise in the benchmark S&P 500 index during the same period.
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