Thames Water's license to supply water to London in doubt again
Credit rating downgrade and missed loan payments put water company's future in jeopardy
Company has until August 16 to submit improvement plan to regulator
Thames Water's license to supply water to London is in doubt again after the company was downgraded to junk status by credit rating agency S&P Global Ratings. The downgrade comes after Thames Water missed loan payments and failed to meet regulatory targets. The company now has until August 16 to submit an improvement plan to the regulator, Ofwat.
If Thames Water fails to meet Ofwat's requirements, it could lose its license to supply water to London. This would be a major blow to the company, which is one of the largest water providers in the UK. It would also be a major inconvenience for Londoners, who rely on Thames Water for their water supply.
Thames Water has been struggling for several years. The company has been fined millions of pounds for pollution and leaks. It has also been criticized for its high water prices. The company's problems have led to calls for it to be re-nationalized.
The downgrade by S&P Global Ratings is the latest in a series of blows for Thames Water. The company's parent company, Kemble Water Holdings, has already defaulted on some of its loans. Thames Water's bondholders are also bracing for the possibility of the company defaulting on its debts.
The future of Thames Water is now in doubt. The company has until August 16 to submit an improvement plan to Ofwat. If it fails to meet Ofwat's requirements, it could lose its license to supply water to London.
Comments