Rating Upgrade
S&P Global Ratings upgraded Hawaiian Electric Industries Inc. and its subsidiaries from B+ to BB- on 23 July 2026, assigning a stable outlook. The agency also affirmed a BB rating on Hawaiian Electric Co.’s senior unsecured debt, maintained a B rating on its commercial paper, and revised the recovery rating on the senior unsecured debt from 1 to 2.
Reason for Upgrade
The upgrade is attributed to decreasing wildfire risk following the Hawaii Public Utilities Commission’s (PUC) approval on 25 June 2026 of approximately $350 million in cost recovery for the company’s wildfire‑mitigation plan, which is to be spent over three years. The PUC had previously approved the plan in December 2025, finding substantial compliance with mitigation guidelines and reasonable expectation of risk reduction.
Mitigation Actions
Hawaiian Electric has implemented a public safety power shut‑off program starting July 2024, deployed AI‑enabled cameras and weather stations, and enhanced its vegetation‑management program. More than 75 % of the $350 million mitigation spending is directed toward grid hardening.
Financial Projections
S&P projects funds‑from‑operations to debt at 10.5 % for 2026, improving to consistently above 12 % from 2027 onward.
Maui Wildfire Claim Payment
The company authorized and paid the first of four payments related to the 2023 Maui wildfire claims, amounting to approximately $479 million, which had been pre‑funded with equity in late 2024.