S&P cuts PG&E ratings to junk, warns of further downgrade

S&P cuts PG&E ratings to junk, warns of further downgrade

And Daniel Ford of UBS Group AG on Monday raised his 12-month price target for PG&E to US$29 from US$26, based on recent disclosures by the company asserting it is not responsible for the 2017 Tubbs fire, the second-most destructive in state history.

Similarly, State Farm said that PG&E was "failing to keep the power lines, wires, and any and all associated equipment in a safe condition at all times to prevent fires".

"Breaking it up or the state running the company, those are all incredibly complicated proposals that just have no indication that they would be successful, certainly not anytime soon", he said.

"PG&E's most important responsibility is public and workforce safety, and our focus continues to be on assessing our infrastructure to further enhance safety and help protect all of the customers we serve from the ever-increasing threat of wildfires", according to a company statement emailed Friday in response to the judge's request for more information.

"Last year, they were able to fool the legislature with the narrative of bankruptcy or bailout, and the legislature gave them a bailout", said Hill, who represents the Bay Area city where a PG&E gas pipeline exploded in 2010, killing eight. Approximately 6,000 of the USDA Forest Service firefighters are assisting with fighting these fires.

However, bankruptcy could be the least of the utility's worries. Under the plan, the company would sell its natural gas division this spring. The $30 billion in potential damages doesn't include penalties, fines or punitive damages, CNBC reported.

Investigators have not determined the cause of a massive wildfire that destroyed the town of Paradise in November.

Shares of PG&E were down 14 per cent in pre-market trading on the NY stock exchange.

The company has considered seeking financial shelter in bankruptcy court because of the potential liabilities, Reuters reported, citing anonymous sources.

Liabilities could exceed the market value One Citigroup analyst estimates that PG&E could be on the hook for up to $15 billion in damages, meaning it's possible its liabilities could exceed the company's market value.

Three major insurance companies are suing PG&E over the billions of dollars in claims they expect to face from the Camp fire.

The agency also said it expects PG&E's capital access may be limited to secured debt issuance, restricting its financing options, because of the increased credit risks, and media speculation on a potential bankruptcy.