Fitch slashes Kemble

Fitch Ratings said it cut Kemble Water Finance Ltd.'s long-term issuer default and senior secured debt ratings to CCC from B. The recovery rating remains RR4. Kemble’s senior secured notes were sold through Thames Water (Kemble) Finance plc.

“The downgrade mainly reflects that Kemble will have to engage with syndicated banks to amend and extend (A&E) the £190 million loan due April 2024 under terms that could be viewed as a distressed debt exchange (DDE), under our criteria,” Fitch said in a press release.

The agency said it also considered tightening liquidity from increasing regulatory and political scrutiny of a dividend from Thames Water Utilities Ltd. to Kemble.

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