Bloomberg Anywhere Remote Login Bloomberg Terminal Demo Request


Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.


Financial Products

Enterprise Products


Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000


Industry Products

Media Services

Follow Us

National Grid Cut by Nomura; Severn Trent, Pennon Preferred

Investors in U.K. utilities should buy shares in water companies Severn Trent Plc and Pennon Plc over National Grid Plc as it struggles to boost U.S. operations, according to Nomura Securities Inc.

“National Grid has been trying to repair returns for the U.S. regulated business for almost two years,” John Musk, an analyst at Nomura, wrote in a note to investors today. The utility’s return on equity from U.S. operations was below 7 percent at the time of the last full-year results, compared with a target of “double-digit” returns, Musk said.

Nomura cut its rating on National Grid to “neutral” from “buy.”

The resolution of rate cases in the U.S., which review how much the utility can charge, has been slow, Musk said. National Grid’s request for additional revenue of $104 million in Massachusetts, which represents about 10 percent of U.S. operations, was trimmed to $58 million by the state’s Department of Public Utilities earlier this month.

A decision by the New York Public Service Commission on National Grid’s final major case filing is expected in January, Financial Director Steve Lucas said on a conference call yesterday.

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.