S&P revises view on California utilities

S&P said it revised the outlooks on San Diego Gas & Electric Co., PG&E Corp. and subsidiary Pacific Gas & Electric Co. and Edison International and subsidiary Southern California Edison Co. to negative from stable.

“The negative outlook reflects the increased probability for a downgrade incorporating the accelerated rate of adverse wildfire activity as demonstrated by the record-setting pace of California’s wildfires, which is still in the early stages of the wildfire season,” S&P said in a press release.

“In our view, the lack of sufficient rainfall, the dry environment, and the ease that relatively routine wildfires can develop into catastrophic wildfires increases the likelihood that a California investor-owned electric utility could potentially be the cause of a catastrophic wildfire,” S&P said.

The agency affirmed its ratings on the companies and their debt.

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