Moody’s and S&P downgrade Thames Water debt rating into junk status

Two ratings agencies have downgraded Thames Water’s debt rating to junk status which means it is a high-risk company that is likely to default on paying their debts.

Moody’s downgraded the troubled water company to Caa1, down from Ba3-PD, this reflects “a significantly tighter liquidity position than previously expected.”

Thames Water was downgraded by the S&P to class A debt to CCC+ which also means the firm is likely to default on their debts.

S&P wrote that Thames Water will likely “default in the next 12 months without any material positive developments.”

A Thames Water spokesperson said, “We continue to operate to the undertakings agreed with our regulator in July 2024 following the reduction in our Class A debt rating to sub-investment grade and we continue to engage with creditors to consider options for the extension of our liquidity runway.”