S&P cuts PG&E ratings to junk, warns of further downgrade https://www.foxbusiness.com/markets/sp-cuts-pge-ratings-to-junk-warns-of-further-downgrade
S&P Global stripped PG&E of its credit rating because of claims from the recent wildfires that occurred in California during November 2018. The rating agency cut Pacific Power & Gas from "BBB-" to a "B".`This is the lowest rating for investment grade credit ratings. The reason for the recent credit downgrade is apparently due to political, regulatory pressure, and uncertainty over its 'POTENTIAL' liabilities.
S&P stated it could lower PG&E futher if major steps are not taken by authorities to improve their regulatory situation over the next few months. Here is an image of PG&E on a monthly price chart and you can see that trouble was brewing on the horizon since October 2018. The wildfire started on or around November 8, 2018. This stock was already showing indications that a huge move pending. Adding more pain to an already beaten up stock this news will only spur more selling and lower prices. PG&E has lost almost 76% of its value in less than 3 months (October 2018 - December 2018). That is unprecendented. PG&E has not traded around $16.00 since April of 2003. Given the news it seems like $12.00 - $8.00 are logical support areas for this stock.