The company’s debt rating was downgraded to Ba3, three steps into junk, from Baa1 on Friday. Its parent company, Hawaiian Electric Industries Inc., was assigned a B1 grade. Moody’s cited the “heightened uncertainty” around the company and its liabilities if it is found at fault for the fires. The company’s debt remains on review for further ratings cuts.
The company said in a regulatory filing Friday that its goal is not restructuring, but to “endure as a financially strong utility,” sending shares surging as much as 26% in pre-market trading. The Moody’s cut is the utility’s second major downgrade into junk, which pushes the its securities into high-yield credit indexes. The move comes in the wake of a major fire in Maui, which has become the deadliest in the US in more than a century. While no official cause has been determined, attention is already focusing on whether power lines owned by Hawaiian Electric played a role.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Canada Canada Latest News, Canada Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Hawaiian Electric shares continue slide amid scrutiny over Maui wildfiresCompany’s stock briefly hits lowest level since 1985
Source: globeandmail - 🏆 5. / 92 Read more »
Hawaiian Electric Muni Debt Also Risks Junk Cut, Barclays WarnsA unit of Hawaiian Electric Industries that is under scrutiny for its possible role in the deadly Maui wildfires could end up seeing its municipal bonds slashed to high-yield from investment-grade, according to Barclays Plc muni and ESG strategists.
Source: BNNBloomberg - 🏆 83. / 50 Read more »
Brokers Ready Trading in Discounted Bonds of Hawaiian ElectricSome Wall Street bond brokers are soliciting interest in a series of rarely traded notes tied to Hawaiian Electric Industries, as market participants assess potential liabilities for the utility following deadly wildfires in Maui, according to people with knowledge of the situation.
Source: BNNBloomberg - 🏆 83. / 50 Read more »
Brokers Ready Trading in Discounted Bonds of Hawaiian Electric(Bloomberg) -- Some Wall Street bond brokers are soliciting interest in a series of rarely traded notes tied to Hawaiian Electric Industries, as market participants assess potential liabilities for the utility following deadly wildfires in Maui, according to people with knowledge of the situation.Most Read from Bloomberg‘Poor Man’s Cocaine’ Costing $3 a Pill Threatens to ProliferateChina Evergrande Group Files Chapter 15 Bankruptcy in New YorkNiger Soldiers Killed in Attacks by Armed Group, Ecow
Source: YahooFinanceCA - 🏆 47. / 63 Read more »