• Investing
  • Stock
  • Editor’s Pick
  • Economy
The Significant Deals
Stock

Moody’s says LA fire may pose risk to Southern California Edison

by January 16, 2025
written by January 16, 2025

NEW YORK (Reuters) – The Eaton (NYSE:ETN) Fire in central Los Angeles County poses a potential credit risk to power provider Southern California Edison, which operates electrical lines in the area where the destructive blaze first started, Moody’s (NYSE:MCO) Ratings said in a report on Thursday.

WHY IT’S IMPORTANT

Fire investigators have not released a cause for the deadly Eaton Blaze, which has burned more than 14,000 acres since starting on Jan. 7. Despite the uncertainty over what caused the disaster, several lawsuits filed against SCE this week accuse equipment owned by the largest Southern California electric utility of sparking the initial flames.

SCE, which is the main subsidiary of Edison International (NYSE:EIX), has said it has not found evidence that its equipment is to blame for the fire.

WHAT’S NEXT

Moody’s said it believes a state wildfire fund and California utilities’ ability to recover fire-related costs will be supportive of SCE’s credit. That could change if there is enough evidence to prove SCE’s infrastructure caused the fire, which would make the company more vulnerable to lawsuits, Moody’s said. Other factors that could harm SCE financially include a depleted wildfire fund, which provides reimbursements for some wild-fire related damage claims, or if the regulatory and political support for California utilities area begins to wane, Moody’s said.

KEY QUOTES

“We could also change our view based on an expectation of more frequent and more severe catastrophic wildfires that create greater risks to the company’s credit profile,” Moody’s said.

This post appeared first on investing.com
0 comment
0
FacebookTwitterPinterestEmail

previous post
Trump mulls executive order to keep TikTok afloat amid legal ban
next post
Citi rates Southwest stock sell, says earnings quality declining

You may also like

BASF results down on impairments, restructuring

January 27, 2025

European chipmakers slump as traders gauge DeepSeek AI...

January 27, 2025

Nasdaq futures tumble as China’s AI push rattles...

January 27, 2025

China Vanke’s CEO, chairman resign amid growing liquidity...

January 27, 2025

Fuji Media, rocked by sexual misconduct allegations, says...

January 27, 2025

Italy’s MPS shares fall ahead of Mediobanca board...

January 27, 2025

British Land stock drops following stake sale

January 27, 2025

UMG shares rally after new multi-year pact with...

January 27, 2025

BASF shares indicated 3% lower as impairments drag...

January 27, 2025

Ryanair cuts 2026 traffic forecast amid ongoing Boeing...

January 27, 2025
Fill Out & Get More Relevant News








    Stay ahead of the market and unlock exclusive trading insights & timely news. We value your privacy - your information is secure, and you can unsubscribe anytime. Gain an edge with hand-picked trading opportunities, stay informed with market-moving updates, and learn from expert tips & strategies.

    Recent Posts

    • Trump implies government could cut contracts and subsidies to Musk’s companies

      June 7, 2025
    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 6, 2025
    • Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

      June 5, 2025

    Categories

    • Economy (245)
    • Editor's Pick (3,646)
    • Investing (505)
    • Stock (6,426)

    Latest News

    • Trump implies government could cut contracts and subsidies to Musk’s companies
    • Procter & Gamble to cut 7,000 jobs as part of broader restructuring

    Popular News

    • Earnings call: Atomera optimistic despite Q3 loss, eyes future growth
    • Rare Michael Jordan, Kobe Bryant rookie jerseys expected to sell for $20 million at auction

    About The Significant deals

    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 thesignificantdeals.com | All Rights Reserved

    The Significant Deals
    • Investing
    • Stock
    • Editor’s Pick
    • Economy