The Office of Water Services (Ofwat) has just published the draft determination for the next regulatory period between April 1, 2015 and March 31, 2020, which will determine the prices that Thames Water can charge its customers. The determination will be finalized in December 2014. We view this determination as challenging for U.K-based water utility Thames Water Utilities Ltd. (TWUL) due to the very limited headroom in the company's ratios, and its operational track record, which we consider has been below the sector average in recent years. We are affirming our 'A-' rating on the class A debt and 'BBB' rating on class B debt issued by TWUL's subsidiaries Thames Water Utilities Cayman Finance Ltd. (TWUCF) and Thames Water Utilities
