...S&P Global Ratings lowered its long-term rating to 'A+' from '##-' on Glendale, Calif.'s electric revenue bonds. The outlook is stable. Glendale Water and Power (GWP, or the utility) serves electricity in the city. The bonds are secured by GWP's electric system net revenue. The rating action reflects our view that GWP faces considerable exposure to wildfires and the potentially significant resulting liability because of the geographic footprint of the utility's service territory. Specifically, 62% of GWP's service territory and 14% of customer meters are within areas that the California Public Utilities Commission (CPUC) assesses as exhibiting an elevated (Tier 2) or extreme (Tier 3) fire threat. In addition, the utility's fixed-charge coverage (FCC), while still at levels we consider very strong, weakened in fiscal 2019, largely as a result of higher operating expenses. California electric utilities were required to submit or update wildfire mitigation plans by Jan. 1, 2020 to comply with...
