Yesterday, we posted about the possibility of
PG&E filing for bankruptcy due to potential liability for the November 2018 California wildfire. Today, PG&E bondholders got bad news as
S&P dropped the company's bond rating
from BBB- to B, firmly in the junk bond category. The downgrade was
attributed political and regulatory pressure, as well as the potential
liabilities from the wildfire. S&P stated that the bond rating could
be further lowered if PG&E did not articulate steps to preserve
credit quality.