Hawaiian Electric cut to BB- at S&P, watch Negative

S&P Global Ratings downgraded Hawaiian Electric and all of its rated subsidiaries to ‘BB-‘, and at the same time placed these entities on CreditWatch with negative implications. S&P said: “We also lowered the short-term and commercial paper ratings to ‘B’. The CreditWatch placement with negative implications reflects the potential for additional downgrades of one or more notches within the coming months.” S&P commented: “Hawaii has been devastated by the worst wildfires in its history, with nearly 100 fatalities, and about 2,200 structures damaged or destroyed. Separately, class-action lawsuits have been filed against Hawaiian Electric Industries Inc., and its subsidiaries, Hawaiian Electric Co. Inc., Maui Electric Co. Ltd., and Hawaii Electric Light Co. Inc., which has increased the risk of a material deterioration in HEI’s credit quality, should the plaintiffs prevail.”