Fitch might cut Southern Water, Greensands

Fitch Ratings said it placed Southern Water Services (Finance) Ltd.'s senior secured class A and B bond ratings on rating watch negative following the announcement of a strategic refinancing package, which would include a MidCo financing entity.

The agency has also placed the B+ issuer default rating and BB- senior secured rating of Greensands UK Ltd.'s on RWN.

“We anticipate that a combination of the tougher price control starting from April 2020 and the announced strategic refinancing could put pressure on the credit profiles of both SWS and Greensands,” Fitch said in a news release.

“We expect to resolve the RWN in the near term, once we have confirmed details of the contemplated transaction and greater visibility on its impact on the group's financial policy.”

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