PG&E (PCG) Gains BBB- Rating Amid Wildfire Risk Improvements

PG&E Corporation (NYSE:PCG) ranks among the top picks for a retirement portfolio. With a stable outlook, Fitch Ratings raised PG&E Corporation (NYSE:PCG) from BB+ to investment grade “BBB-” on September 26. The improvement is in line with the company’s efforts to lower the risk of wildfires and the recent passage of California Senate Bill 254, which establishes a $18 billion continuing account to cover participating utilities’ catastrophic wildfire liabilities.

In order to provide more liquidity to handle possible claims from the Eaton Fire in Southern California earlier this year, the new fund will be added to the $21 billion Assembly Bill 1054 fund that was already in place in 2019.

PG&E’s financial metrics have also strengthened, with funds from operations leverage rising to 4.6x in 2024 from 6.9x a year before. Fitch expects this statistic to rise at about 4.8x and 4.6x in 2025 and 2026, respectively.

PG&E Corporation (NYSE:PCG), through its subsidiary Pacific Gas & Electric Company, serves over 16 million persons in Northern and Central California.

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Disclosure: None. This article is originally published at Insider Monkey.