After the California legislature promoted the size of the fire insurance fund, the PG and E -Corporation, which filed for bankruptcy in 2019, was upgraded to the investment grade through a patch rating.
The rating agency attributed the upgrade to $ 18 billion in additional approval in the fund, which is designed to help pay the use of fire losses, as well as the progress of PG & E’s “dealing with the risk of forest fire”.
Related: California plans to raise the Utility Wild Fund Fund $ 18 billion
Fich added that PG & E can also benefit from a new California law that will require a study to examine how to effectively spread the cost of forest fire.
PG & E did not immediately respond to the comment request.
Fitch’s decision reflects a year -long effort by PG&E to completely recover from one of the worst periods in its history. The company became the biggest utility to file for bankruptcy when it did so in 2019. This happened a few weeks after the PG&E was drunk, when the company’s goods began to end extraordinarily after a fire at a 2018 camp in northern California. The PG&E dropped the bank’s claims in 2020 after being agreed to set for about $ 25.5 billion.
The investment rating rating can significantly reduce the company’s borrowing costs. But in general, investors have two advanced classification to consider a company part of this asset class, and its bonds are added to the advanced index. Moody rating and S&P Global rating still count the company as a junk.
According to Securities filing, PG&E’s total loan was about $ 60 billion in late June.
Copyright 2025 Bloomberg.
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