S&P: Greensands view to stable

Standard & Poor's said it revised its outlook on Southern Water (Greensands) Financing plc to stable from negative.

At the same time, the agency affirmed its BB- long-term corporate credit rating on Greensands and its BB- issue rating on the £475 million senior secured debt issued by Greensands. The recovery rating on this debt is unchanged at 4, indicating an expectation of average (30%-50%) recovery in the event of a payment default.

Dividends from the Southern Water Services Ltd. (SWS) securitization - issued by Southern Water Services (Finance) Ltd. (SWSF) - are the main source of cash flow for its holding company, Greensands. Greensands requires these dividends to meet its debt service obligations.

S&P said the outlook revision on Greensands follows similar action on the debt issued by SWS, triggered by an improvement in SWS' cash flow coverage ratios.

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