PG&E Corp. has earned an upgrade to investment grade from Fitch Ratings, marking a significant step in the utility’s recovery from its bankruptcy and wildfire-related troubles. The upgrade follows the California legislature’s decision to expand a wildfire insurance fund by an additional $18 billion to help utilities cover costs from fire damages.
Fitch highlighted the boost to the insurance fund and PG&E’s efforts to reduce wildfire risks as key reasons for the improved rating. This move comes after years of challenges for the company, which filed for bankruptcy in 2019. That bankruptcy came just weeks after PG&E was sharply downgraded to junk status following equipment-related sparks that caused the devastating 2018 Camp Fire in Northern California.
Despite the upgrade from Fitch, other major rating agencies like Moody’s and S&P Global still classify PG&E as junk. The company ended June 2026 with roughly $60 billion in total debt. PG&E exited bankruptcy in 2020 after agreeing to pay about $25.5 billion to settle claims from past wildfires.
The new California law also requires a study on spreading wildfire costs more fairly, which Fitch suggests could benefit PG&E further. An investment-grade rating helps reduce borrowing costs, though it usually takes two top ratings for a company’s bonds to be included in high-grade investment indexes.
PG&E has not yet commented on the rating change. The upgrade marks a hopeful sign as the utility continues to rebuild trust and financial strength after one of the toughest periods in its history.