READ MOREMoody’s, which cut PG&E’s rating to B2 from Baa3, said access to capital has become more uncertain for the company.
The downgrade followed a Reuters report on Friday, citing sources, that the utility company was exploring filing for bankruptcy protection.
Moody’s also downgraded its ratings of PG&E unit Pacific Gas & Electric Co to Ba3 from Baa2.
“The company (PG&E) 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,” Jeff Cassella, Moody’s vice president-senior credit officer, said in a statement.
S&P cut the rating on PG&E and its Pacific Power & Gas Co unit on Monday to “B” from “BBB-,” the lowest tier of so-called investment-grade ratings. ■