Jan 7 (Reuters) - S&P Global Ratings on Monday stripped PG&E Corp of its investment-grade credit rating, citing indications of a significant deterioration in the political and regulatory environment for the California power utility.
S&P cut the rating on both PG&E and its Pacific Power & Gas Co operating utility to “B” from its previous rating of “BBB-,” the lowest tier of so-called investment-grade ratings.
The ratings agency said the downgrade reflects PG&E’s recent announcement that its board was reviewing the company’s management, finances, governance and structural options.
"We assess this announcement as the culmination of a decisive souring of the political and regulatory environment," S&P said here in a statement.
Reporting by Ismail Shakil and Arundhati Sarkar in Bengaluru; Editing by Sunil Nair