DISTRESSED DAILY: PG&E Debt Risks Grow Amid California Wildfires

Aug. 13, 2021, 12:23 PM

PG&E Corp.’s chances of a escaping a downgrade on billions of dollars of bonds hinge on the devastation of the Dixie Fire that has burned 510,000 acres, and the rest of the California wildfire season, according to Barclays.

California’s biggest utility won investment-grade ratings after exiting bankruptcy last year in a deal that gave victims of previous wildfires a nearly 25% ownership stake in the company as payment for their losses. That stock is held in a trust and is used to pay off claims related to fires tied to PG&E.

“We do view the Dixie Fire as a troubling …

Steven Church

Bloomberg News

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