Thames Water Cut to Junk by S&P, Following Moody’s Move
- Company’s top-ranked bonds lose S&P investment-grade status
- S&P says firm’s liquidity problems won’t be resolved soon
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Thames Water Utilities Finance Plc’s top-ranked bonds were cut to junk by S&P Global Ratings on Wednesday, with the rating agency warning that the firm’s liquidity problems were unlikely to improve in the near term.
It follows Moody’s Ratings in taking the debt below investment-grade, putting it firmly in breach of its operating license, and increases the pressure on the regulator Ofwat to take action as the company falls deeper into crisis.