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Standard & Poor’s downgrades Thames Water

by Karma Loveday

Standard & Poor’s (S&P) has followed Moody’s in downgrading its ratings on Thames Water.


S&P knocked Thames’ class A debt to BB from BBB-, and class B debt to B from BB. The ratings have a negative outlook.


The action reflected factors including Thames’ prospects under Ofwat’s PR24 Draft Determination, deteriorating liquidity, large inflexible capex requirement, and licence condition demand for two investment grade credit ratings.


Thames Water noted the action and said it remained committed to extending its liquidity runway, sourcing new equity and engaging with Ofwat to secure an investible PR24 final determination.

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