S&P lowers PG&E, still on watch

S&P said it lowered its issuer credit ratings on PG&E Corp. and subsidiary Pacific Gas & Electric Co. to BBB- from BBB and placed the ratings on CreditWatch with negative implications.

At the same time, S&P lowered the ratings on Pac Gas’s senior unsecured debt by one notch to BBB- from BBB and placed the rating on CreditWatch with negative implications.

In addition, S&P lowered the short-term ratings on both PG&E and Pac Gas to A-3 from A-2 and placed the ratings on CreditWatch with negative implications.

S&P also lowered the ratings on Pac Gas' preferred stock to D from CCC+.

“The downgrade reflects the rising risks that PG&E may face from the devastating Camp Fire. While the cause of the Camp Fire is still under investigation, these developments have again elevated contingent risks, pending investigation to determine if the utility's equipment is the cause,” S&P said in a news release.

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