Moody's cuts Severn Trent Water

Moody's Investors Service said it downgraded to Baa1 from A3 the issuer rating of Severn Trent Water Ltd. as well as the senior unsecured debt ratings of Severn Trent Water Utilities Finance plc, whose issuance is guaranteed by Severn Trent Water. Concurrently, the rating agency downgraded to Baa2 from Baa1 the issuer and senior unsecured debt ratings of Severn Trent plc. The outlook is stable.

These rating actions conclude the rating review started on Dec. 20, following publication by the Water Services Regulation Authority (Ofwat), the economic regulator for water companies in England and Wales, of its final determination for the forthcoming five-year regulatory period, starting April 1.

The rating actions follow Severn Trent's decision, announced Tuesday, to accept Ofwat's final determination for Severn Trent Water.

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