Overview

• Moody’s downgraded Thames Water’s debt rating to Caa1, while S&P cut it to CCC+, both indicating high risk of default.
• Thames Water faces a critical funding shortage, with current liquidity expected to last only until December 2024.
• The utility company, serving 16 million people, is urgently seeking new equity funding and negotiating with creditors to extend its liquidity runway.
• Regulator Ofwat has placed Thames Water under special measures and may appoint an independent monitor to oversee its turnaround efforts.
• Without significant financial intervention, Thames Water could be forced into a special administration regime, a form of temporary nationalization.