Fitch gives PG&E, unit BB

Fitch Ratings said it assigned long-term issuer default ratings of BB to PG&E Corp. and Pacific Gas & Electric Co.

The agency also assigned a BB senior secured rating to PG&E and a BBB- senior secured rating to Pacific Gas as well as a BB preferred rating.

The outlooks are stable.

“The ratings and stable outlooks for the holding company and utility reflect considerable credit risk associated with potential catastrophic wildfires, driven by cycles of drought-rain-drought, high heat, low humidity and high winds, among other factors, and a growing urban-wildland interface,” Fitch said in a press release.

“The sharp decline in deadly catastrophic wildfires in 2019 compared to the 2017-2018 fire seasons is an encouraging sign that wildfire mitigation efforts may be bearing fruit. Nonetheless, risk of future wildfire activity on par with 2017-2018 cannot be ruled out and remains a primary credit concern,” Fitch said.

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