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  • by Karma Loveday

Ofwat allows Portsmouth to stick with a single credit rating

Ofwat has agreed to a request from Portsmouth Water for a derogation from the regulatory requirement to maintain investment grade issuer credit ratings with at least two credit rating agencies.

Portsmouth requested the derogation for five years and only if it stays with its current credit rating provider, does not experience a cash lock up trigger event or change owner. It argued acquiring and maintaining a second rating could cost the average customer 40-50p and distract management attention from focusing on outcomes delivery. It offered mitigations for the reduced information that would be available to Ofwat as a result of the single rating.

Ofwat consented, on the proviso that there is no material change in Portsmouth’s position.


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