Research Update: Thames Water's Class A and B Debt Downgraded On Deteriorating Liquidity; Outlook Negative - S&P Global Ratings’ Credit Research

Research Update: Thames Water's Class A and B Debt Downgraded On Deteriorating Liquidity; Outlook Negative

Research Update: Thames Water's Class A and B Debt Downgraded On Deteriorating Liquidity; Outlook Negative - S&P Global Ratings’ Credit Research
Research Update: Thames Water's Class A and B Debt Downgraded On Deteriorating Liquidity; Outlook Negative
Published Jul 31, 2024
9 pages (3759 words) — Published Jul 31, 2024
Price US$ 225.00  |  Buy this Report Now

About This Report

  
Abstract:

On July 9, 2024, Thames Water Utilities Finance PLC (Thames Water) announced that it could cover its liquidity needs until May 2025. The following day, we placed our issue ratings on Thames Water's debt on CreditWatch with negative implications. We do not believe that Thames Water will have a remedy plan to cover its liquidity needs by 1.1x for the next 12 months before the autumn of 2024. We have revised our assessment of Thames Water's business risk downward to strong from excellent. This reflects the difficulties the company is facing in financing its large and inflexible capital expenditure (capex), which is driven by regulatory requirements. In addition, the company is in breach of its current license conditions. As part

  
Brief Excerpt:

...- On July 9, 2024, Thames Water Utilities Finance PLC (Thames Water) announced that it could cover its liquidity needs until May 2025. The following day, we placed our issue ratings on Thames Water's debt on CreditWatch with negative implications. - We do not believe that Thames Water will have a remedy plan to cover its liquidity needs by 1.1x for the next 12 months before the autumn of 2024. - We have revised our assessment of Thames Water's business risk downward to strong from excellent. This reflects the difficulties the company is facing in financing its large and inflexible capital expenditure (capex), which is driven by regulatory requirements. - In addition, the company is in breach of its current license conditions. As part of Ofwat's requirements, Thames Water needs to maintain two investment-grade ratings. We understand that Thames Water is in ongoing discussions with Ofwat about this. - Thames Water has stated that it is committed to increasing its common equity from either...

  
Report Type:

Research Update

Ticker
1615Z@LN
Issuer
Thames Water Utilities Finance PLC
Sector
Global Issuers
Country
United Kingdom
Region
Latin America
Format:
PDF Adobe Acrobat
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Research Update: Thames Water's Class A and B Debt Downgraded On Deteriorating Liquidity; Outlook Negative" Jul 31, 2024. Alacra Store. May 13, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Thames-Water-s-Class-A-and-B-Debt-Downgraded-On-Deteriorating-Liquidity-Outlook-Negative-3223675>
  
APA:
S&P Global Ratings’ Credit Research. (). Research Update: Thames Water's Class A and B Debt Downgraded On Deteriorating Liquidity; Outlook Negative Jul 31, 2024. New York, NY: Alacra Store. Retrieved May 13, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Research-Update-Thames-Water-s-Class-A-and-B-Debt-Downgraded-On-Deteriorating-Liquidity-Outlook-Negative-3223675>
  
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