Hawaiian Electric Industries Inc.’s stock
HE,
fell another 21% in premarket trade Friday, after Standard & Poor’s again downgraded its rating, sending it further into junk territory, as the problems stemming from the Maui wildfires worsened. On Thursday, Maui County sued the utility over the fires, saying the utility failed to shut off power despite exceptionally high winds and dry conditions. Later, the company said it would suspend its dividend to conserve cash and that is has drawn down almost all of its $375 million revolving credit facilities. “We view management’s decisions as prudently reducing the company’snear-term liquidity risks, but we also assess these actions as confirmation of the company’s likely inconsistent access to the capital markets, which we believe is fundamental to the successful operation of a utility business,” S&P said in a statement. The rating agency cut the rating to B- from BB- and said it’s still on CreditWatch negative, meaning it could downgrade it again. S&P cut the rating to junk on Aug. 16 to reflect the fallout from the wildfires. The stock has fallen 72% in the year to date, while the S&P 500
SPX,
has gained 14%.
