trending Market Intelligence /marketintelligence/en/news-insights/trending/48cps4P9A9uek4fz3uh8_w2 content
Log in to other products

Login to Market Intelligence Platform


Looking for more?

Contact Us

Request a Demo

You're one step closer to unlocking our suite of comprehensive and robust tools.

Fill out the form so we can connect you to the right person.

If your company has a current subscription with S&P Global Market Intelligence, you can register as a new user for access to the platform(s) covered by your license at Market Intelligence platform or S&P Capital IQ.

  • First Name*
  • Last Name*
  • Business Email *
  • Phone *
  • Company Name *
  • City *
  • We generated a verification code for you

  • Enter verification Code here*

* Required

In this list

Fitch downgrades SDG&E on higher wildfire risk in California


S&P podcast - Coronavirus pandemic, oil price crash shake up energy sector

Case Study: A Utility Company Efficiently Sharpens Its Focus on the Credit Risk of New Customers

Energy Evolution Podcast

Energy Evolution Why solar energy could get even cheaper

Fitch downgrades SDG&E on higher wildfire risk in California

Fitch Ratings on March 11 downgraded San Diego Gas & Electric Co.'s long-term issuer default rating to BBB+ from A- and maintained its negative outlook.

"Fitch believes SDG&E's risk profile is no longer consistent with an 'A-' IDR due to heightened catastrophic wildfire risk in California and an uncertain path to recovery of related liabilities," the rating agency said in an investor note.

The Sempra Energy subsidiary could see further downgrades due to future large wildfires in its service territory and the lack of timely legislative action to recover potential third-party liabilities, Fitch added.

Former Gov. Jerry Brown on Sept. 21, 2018, signed into law a wildfire bill to help limit the financial impact on utilities. However, the bill did not address the state's "inverse condemnation" doctrine, under which courts hold utilities strictly liable for wildfire damages regardless of preventive measures.

Fitch also lowered SDG&E's senior secured and senior secured pollution control and industrial revenue bonds ratings to A from A+, and the senior unsecured rating to A- from A. The short-term issuer default rating and commercial paper rating were affirmed at F2. About $5 billion of debt is affected by the rating actions.

On March 5, Moody's also lowered the ratings of SDG&E on wildfire liability-related risks.