HE - Hawaiian Electric extends decline after S&P downgrades to junk

2023-08-15 10:57:18 ET

• Hawaiian Electric ( NYSE: HE ) -7.8% in Tuesday's trading on growing questions over whether the company's power equipment may be a source of the Maui wildfires , which have killed 99 people so far with several more likely in the coming days.
• The stock fell 34% on Monday - its sixth straight declining session - to close at $21.43, its lowest close since March 2010.
• S&P said it downgraded Hawaiian Electric ( HE ) and all rated subsidiaries to BB- and placed the entities on CreditWatch with negative implications, and lowered the short-term and commercial paper ratings to B.
• "The wildfires destroyed a significant segment of HEI's customer base that will take many years to restore, and as such, we expect a long-term weakening in the company's profitability measures," and class-action lawsuits filed against the company could lead to a deterioration in credit quality, S&P said.

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