Los Angeles Department of Water&Power Ratings Lowered Two Notches To 'A' (Power) and 'AA-' (Water) On Increased Risks

AUSTIN (S&P Global Ratings) Jan. 14, 2025--S&P Global Ratings lowered its long-term and underlying ratings on the Los Angeles Department of Water and Power's (LADWP, or the department) power system revenue bonds outstanding by two notches to 'A' from 'AA-' and placed the ratings on CreditWatch with negative implications. S&P Global Ratings also lowered its long-term and underlying rating (SPUR) on LADWP's water system revenue bonds outstanding by two notches to 'AA-' from 'AA+' and placed the ratings on CreditWatch with negative implications. "The downgrade on the power system's bonds reflects our view that, although the utility's infrastructure has so far not been implicated as the cause of the ongoing wildfires, the increasing frequency and severity of highly destructive wildfires

...January 14, 2025 AUSTIN (S&P Global Ratings) Jan. 14, 2025--S&P Global Ratings lowered its long-term and underlying ratings on the Los Angeles Department of Water and Power's (LADWP, or the department) power system revenue bonds outstanding by two notches to 'A' from '##-' and placed the ratings on CreditWatch with negative implications. S&P Global Ratings also lowered its long-term and underlying rating (SPUR) on LADWP's water system revenue bonds outstanding by two notches to '##-' from '##+' and placed the ratings on CreditWatch with negative implications. "The downgrade on the power system's bonds reflects our view that, although the utility's infrastructure has so far not been implicated as the cause of the ongoing wildfires, the increasing frequency and severity of highly destructive wildfires within LADWP's service territory and recent spread into more urban areas highlights the utility's potential vulnerability to financial liability claims that could eclipse its liquidity and insurance...

Ratings Action