S&P Downgrades Cash-Strapped Thames Water to ‘Junk’ Status

S&P Global Ratings has downgraded the credit rating of the UK’s biggest water supplier Thames Water to “junk” status and warned that the firm’s liquidity problems were unlikely to improve in the near term. Last week, Moody’s Ratings in a similar move downgraded the company’s credit rating, making it harder and more expensive for Thames Water to borrow money. S&P’s announcement on Wednesday questioned the company’s ability to cover its liquidity needs before the autumn of 2024. Thames Water is facing a debt pile of £15.2 billion in the year to March, after its parent company pulled £500 million in interest payments, due at the end of April. As a result, Thames Water had defaulted on some of its debts, heightening concerns of its survival....