The Los Angeles Department of Water and Power is facing the risk of significant financial liability for damages in the utility’s response to the Palisades Fire, according to Pacific Investment Management Co.
“Given the sheer size of insured and uninsured losses, managing wildfire claims could have a material impact on the leverage profile of LADWP, and the risk premium investors require to hold roughly $19 billion in outstanding debt,” the asset manager said in a report to clients.
Related: Climate Change Made LA 35% More Primed to Burn, Scientists Say
A series of catastrophic wildfires