Edison International warns legislative inaction on wildfire liability reforms could hurt its credit rating and capital access.
Edison International (EIX) shares fell 5.4% after CEO Pedro Pizarro cautioned California lawmakers may miss the August 31 deadline for wildfire liability reforms. Failure to act could push the utility’s credit rating below investment grade, increasing borrowing costs.
The company has already committed $1.6B to fire victims and faces rising losses from the Eaton Fire. Without supportive reforms, Edison warned its investment plans and access to low-cost capital may be disrupted, altering its growth trajectory.
Markets reacted negatively to the uncertainty, with EIX underperforming peers in Friday’s session.