Moody's downgrades Pacific Gas & Electric to Ba3, PG&E Corp. to B2
Moody's Investors Service on Thursday downgraded the ratings of Pacific Gas & Electric Company, including its senior unsecured rating to Ba3 from Baa2 and its short term rating for commercial paper to Not Prime from Prime-2. Moody's also downgraded PG&E's holding company, PG&E Corporation, including its senior unsecured rating to B2 from Baa3 and its short term rating for commercial paper to Not Prime from Prime-3. At the same time, Moody's assigned a Ba3 Corporate Family Rating, a B1-PD Probability of Default rating and an SGL-3 Speculative Grade Liquidity Rating. Ratings of PCG and PG&E remain on review for downgrade. "We see a much more challenging environment for PG&E, as potential liabilities grow, liquidity reserves decline and access to capital becomes more uncertain," said VP-Senior Credit Officer, Jeff Cassella. "The company is increasingly reliant on extraordinary intervention by legislators and regulators, which may not occur soon enough or be of sufficient magnitude to address these adverse developments," added Cassella.