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S&P downgrades PG&E utility to D after it misses $21.6M interest payment

S&P Global Ratings on Jan. 16 downgraded the issuer credit rating of Pacific Gas and Electric Co. to D from CC, after the utility missed the $21.6 million interest payment on $800 million of its 5.4% senior notes due 2040.

The payment was due Jan. 15. Although the company has a 30-day grace period, S&P Ratings analysts do not expect the company to pay the installment during the grace period given its plans to seek Chapter 11 bankruptcy protection on Jan. 29.

S&P Ratings also downgraded the short-term rating and commercial paper rating on Pacific Gas and Electric to D from C and lowered the issue-level rating on the 5.4% notes to D from CC.

The downgrade comes two days after all three rating agencies lowered ratings on parent company PG&E Corp. and utility Pacific Gas and Electric after their announcement of intent to file bankruptcy related to billions of dollars of potential liabilities from the deadly 2017 and 2018 wildfires in California.

The original S&P Global Ratings documents referred to in this news article can be found here.