FirstEnergy‘s credit rating has been downgraded to junk status by the three big rating agencies. It’s another blow to the company that has experienced a tumultuous year after being linked to a $61 million alleged racketeering scheme.
Moody’s has downgraded FirstEnergy’s credit rating to Ba1, which puts the large utility company at below investment grade status with all three credit agencies.
In July, federal investigators revealed a bribery scheme that suggested FirstEnergy funneled millions of dollars to a dark money group in order to help Republican Larry Householder get elected as House Speaker and push through a sweeping energy bill that accomplished several things on FirstEnergy’s legislative agenda, including a nuclear power plant bailout.
Since then, a FirstEnergy lobbyist has pleaded guilty to the racketeering charge.
The company says it has created new accountability measures to address these issues.