Recent gas explosions that rocked the Merrimack Valley and led to the death of an 18-year-old could lead to the financial deterioration of Columbia Gas and its parent company.

That’s according to recent comments from Moody’s Investors Service, which cited a similar situation in San Bruno, California.

When Pacific Gas & Electric’s pipeline explosions occurred in 2010, third-party liability claims amounted to more than $500 million. Although those were mostly covered by insurance, the California Public Utilities Commission and interveners were sharply critical of Pacific Gas. As a result, the company’s shareholders ultimately had to fund more than $4 billion of unrecoverable costs and penalties.

After the Merrimack Valley explosions, which hit Lawrence particularly hard and led to 25 hospitalizations and damaged 60 homes, Columbia Gas has already donated $10 million to the Greater Lawrence Disaster Relief Fund and withdrawn its rate hike proposal.

Gov. Charlie Baker has also put Eversource in charge of restoring utility services in the area after they were shut down to contain the incident.

Columbia Gas has historically had a good relationship with the state’s Department of Public Utilities, according to Moody’s, but rapid growth has strained the financial position of its parent company, which guarantees Columbia’s debt, leaving little cushion for unforeseen events.

However, according to Moody’s, the company has made great progress in addressing its leveraged balance sheet. It issued $600 million of common equity and $400 million of preferred equity earlier this year in order to achieve its stated goal of funds from operations to debt of 13 to 14 percent by the end of 2018.

The Massachusetts gas explosion could make it harder for company to achieve this goal as it incurs additional costs for system restoration and faces potential liability for damages.