Moody’s announced Monday evening that it has downgraded California utility company PG&E and its holding company, PG&E Corporation, to what the company terms "bonds of poor standing."
The bottom line: "The downgrade is prompted by the announcement today that PG&E and its parent expect to make a Chapter 11 bankruptcy filing on or around January 29," Moody's representatives said in a statement.
Moody's had already downgraded PG&E out of investment grade, but the move puts the company's debt further into junk territory at a Caa3 rating, also noting that the rating outlook is negative.
"PG&E’s legislative and regulatory environment has become so challenging that management believes it is unlikely that wildfire exposure will be addressed in a manner that is timely enough to support the financial stability of the company."
