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  • by Trevor Loveday

Credit rating agency changes outlook for Anglian to stable from negative

Moody's Investors Service (Moody's) has changed the outlook on Anglian Water and

Anglian Water Services Financing to stable from negative.


The rating action followed the publication, of the summary final determination by the Competition and Markets Authority (CMA) which provided a “more favourable settlement” than Ofwat’s 2019 determination”; and

Anglian Water's announcement last week that it was "committed to reduce total gearing,"


Moody's said its affirmation of the ratings and change to a stable outlook reflected its view that, the CMA settlement would enable Anglian to maintain financial ratios in line with guidance for the current rating.


The stable outlook, according to Moody's reflected its expectation that Anglian Water's net ratio of debt to regulatory capital value will fall significantly below 80%, and that the company will be

able to achieve an annual interest cover ratio (AICR) “comfortably above” 1.3x – the minimum guidance for

the current ratings. Moody's expects the AICR to strengthen over the course of AMP7.

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