...- On Oct. 25, 2024, Thames Water Utilities Finance PLC (Thames Water) announced a proposed liquidity extension transaction that we consider a distressed restructuring of the existing class A and class B debt. - We do not believe the proposed non-cash consent fee adequately compensates the loss of seniority and maturity extension for both classes of debt. - We removed the one-notch uplift for structural enhancement to the class A debt, reflecting the company's intent to access reserved cash and our view that the structural enhancement no longer reduces the risk of default for these creditors during the Standstill Period. - We therefore lowered our issue-level ratings on the class A debt to '##' from '###+' and class B debt to 'C' from '###-'. - We also lowered our recovery expectation on the class A debt, reflecting the potential introduction of additional super senior debt. - The negative outlooks on the issue-level ratings reflect that, if the proposed transaction that we characterize...
