Hawaiian Electric Industries Inc. fell 21% in premarket trading hit by a plethora of bad news as the company's woes show no sign of ending anytime soon.
After the closing bell Thursday, the firm said it was suspending its dividend, starting in the third quarter, in a move aimed at further increasing its cash position.
The company said this will allow it to continue to allocate cash to "rebuilding and restoring power and ensure a strong future for the utility."
The utility is contractually obligated to pay a cash dividend of 36 cents a share in September, which it declared just days before the blazes that devastated the Maui town of Lahaina and other parts of the island.
"We are working with the county, state and federal governments to determine what happened in the course of an extraordinary climatological event," the company said.
Adding to the firm's woes, S&P downgraded the company and all of its rated subsidiaries to 'B-' from 'BB-', citing the company's likely inconsistent access to the capital markets in the aftermath of the recent Maui wildfires.
"Given the essential nature of the services provided by Hawaiin Electric, we believe that having consistent access to the capital markets is fundamental for the long-term success of its operations," S&P said in a note.
Earlier Thursday, Maui County sued Hawaiian Electric over the fires, saying the utility failed to shut off power despite exceptionally high winds and dry conditions.