S&P ends watch on Hawaiian Electric

S&P said it affirmed its B- ratings on Hawaiian Electric Industries Inc. (HEI), Hawaiian Electric Co. Inc., Hawaii Electric Light Co. Inc., and Maui Electric Co. Ltd., ended the negative watch and assigned negative outlooks to these entities.

HEI is working with the state of Hawaii and several stakeholders on Maui's recovery from the August Lahaina wildfire, which includes compensation for those who suffered losses and are named as plaintiffs in various cases, the agency said.

Additionally, Hawaii’s governor started the One Ohana initiative on March 1, providing a $175 million public-private fund to compensate victims and their families.

The company is assessing its options to bolster liquidity, which includes securitization, reprioritizing capital spending, cutting operation and maintenance costs, and selling assets, S&P said.

“The negative outlook on HEI and its subsidiaries reflects continued litigation risk and ongoing investigations related to the 2023 wildfires that could materially weaken credit quality,” the agency said in a press release.

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