Fitch rates PG&E DIP facility BBB-

Fitch Ratings said it assigned a BBB- rating to Pacific Gas & Electric Co.'s proposed $5.5 billion debtor-in-possession revolving and term loan facility.

“The BBB- rating is supported by the strong over-collateralization of the fully drawn DIP facility, a comprehensive collateral package consisting of a first-lien on substantially all of the utility's assets, and the ranking as a super-priority administrative claim in the liability waterfall,” the agency said in a news release.

“PG&E's imminent bankruptcy filing reflects the culmination of a crisis of confidence driven by potential wildfire-related liabilities in the tens of billions of dollars without a clear path to timely recovery of such costs under California law.”

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