Jul. 22 at 8:47 PM
S&P Global Ratings upgraded Hawaiian Electric Industries and its subsidiaries to BB- from B+, citing reduced wildfire risk and assigning a stable outlook. The upgrade follows Hawaii regulators’ approval of roughly
$350 million in cost recovery for the utility’s wildfire mitigation investments, which are expected to be implemented over the next three years.
Hawaiian Electric has expanded wildfire prevention efforts through public safety power shutoffs, AI-powered monitoring cameras, weather stations, vegetation management, and grid-hardening projects, with more than 75% of mitigation spending focused on strengthening the electric network.
S&P expects the company’s funds-from-operations-to-debt ratio to improve from about 10.5% in 2026 to above 12% from 2027 onward. The utility has also begun making payments related to the 2023 Maui wildfire settlement, including a recent
$479 million payment that was pre-funded through an equity raise.
$HE