German Industry Employment Falls to Lowest Level in a Decade 
Asian Currencies Stabilize as Dollar Holds Near Two-Month High After Fed Hawkish Signal 
Canada Imposes 10% Tariff on Canned Vegetable Imports to Protect Domestic Industry 
Oil Prices Drop as U.S.-Iran Talks Ease Supply Concerns 
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Russian Stocks End Flat as MOEX Index Hits New 52-Week Low 
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BOJ Signals More Rate Hikes as Inflation Risks Rise Amid Energy Price Pressures 
Russia Stocks End Flat as MOEX Index Hits New 52-Week Low; Gold Falls and Oil Mixed 
Gold Prices Slide as Hawkish Fed and Strong Dollar Weigh on Bullion 
China Keeps Loan Prime Rates Unchanged for 13th Straight Month as Policymakers Prioritize Credit Demand Recovery 
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S&P Global has warned that it may downgrade PacifiCorp, the Berkshire Hathaway-owned utility, to junk status as mounting liabilities from Oregon wildfire lawsuits threaten its financial stability. The credit rating agency said it could cut PacifiCorp’s current “BBB-minus” rating—its lowest investment-grade level—by at least two notches if future jury awards average around $19 million per plaintiff. A one-notch downgrade is possible if awards remain significant but lower than that figure.
The warning follows a February 25 Oregon jury verdict awarding $305 million to 16 plaintiffs who accused PacifiCorp of failing to shut off power lines during a powerful Labor Day weekend windstorm in 2020. That decision equates to roughly $19 million per plaintiff, significantly higher than the approximately $5 million average awarded in earlier trials related to the same wildfires.
S&P Global said it will closely monitor upcoming verdicts in the ongoing James class action litigation, with trials scheduled through early 2028. Berkshire Hathaway Energy, PacifiCorp’s immediate parent, estimates the utility faces up to $48 billion in potential payouts in addition to the $1 billion already awarded. Overall, PacifiCorp’s wildfire exposure is estimated at about $50 billion.
PacifiCorp has stated it plans to appeal the $305 million verdict and is awaiting a ruling from the Oregon Court of Appeals on whether the class action was properly certified and whether plaintiffs can recover damages for emotional distress. The company emphasized its commitment to maintaining operational stability and providing certainty to employees, customers, and communities.
Berkshire Hathaway Energy warned that losing investment-grade credit status could limit PacifiCorp’s ability to raise capital for ongoing operations, including paying suppliers and delivering electricity. However, the parent company said PacifiCorp expects to maintain sufficient liquidity for more than a year. Berkshire Hathaway itself continues to hold strong investment-grade credit ratings.
