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Moody’s slashes Kemble notes to Ca
Moody's Ratings said it downgraded to Ca from B3 the backed senior secured rating of the 400 million medium-term notes due 2026, issued by Thames Water (Kemble) Finance plc.
The downgrade reflects the March 28 announcement by Thames Water Utilities Ltd. that it will not receive an additional equity injection of £500 million by March 31, 2024, as previously envisaged, the agency said. Any future investment is unlikely before the end of June, which is when the draft determination for the April 1, 2025-March 2030 regulatory period is due.
“The downgrade of Kemble's backed senior secured debt rating to Ca from B3 reflects the heightened risk of a near-term payment default as well as potentially high loss for creditors as a consequence. Existing cash and available undrawn amounts under facilities at Kemble level are currently insufficient to fully support repayment of a £190 million bank loan maturing on April 30, 2024. In addition, Kemble's announcement to suspend interest payments may lead to a payment default on the rated bonds at the next interest payment date in May 2024,” Moody’s said in a press release.
Kemble's outlook remains negative.
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