By Connor Hart
Shares of Hawaiian Electric Industries gained after S&P Global Ratings revised its rating outlook for the utility to "positive" from "negative."
The stock rose 11%, to $11.59, in afternoon trading Friday. Shares are up 19% so far this year, though they have edged 1.9% lower over the past 52 weeks.
The revision came after Hawaii's Supreme Court last month issued a decision regarding insurance claims related to the Maui wildfires, which stated that insurers can't separately sue defendants for amounts beyond the mutually agreed upon settlement, once it becomes finalized.
It also follows Hawaiian Electric having agreed to sell its community bank subsidiary to a group of investors earlier this year. The deal generated approximately $384 million in net proceeds, S&P said, which it expects will be used to pay down debt.
S&P said it believes the decision and asset sale are supportive of Hawaiian Electric's, and its subsidiaries', credit quality. The firm's positive outlook reflects the increased likelihood that the global wildfire settlement will be finalized in its current form, limiting the extent of liabilities for the company, it added.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
March 07, 2025 14:29 ET (19:29 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
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