Moody’s: Yorkshire Water view to stable

Moody's Investors Service said it affirmed the Baa2 corporate family rating of Yorkshire Water Services Ltd.

The agency also affirmed the backed Baa1 senior secured and backed Ba1 subordinated debt ratings of the class A and class B notes, respectively, issued by Yorkshire Water Services Bradford Finance Ltd., the backed Baa1 senior secured debt ratings of Yorkshire Water Services Finance Ltd., and the backed Baa1 senior secured debt ratings of Yorkshire Water Services Odsal Finance Ltd. (all guaranteed by Yorkshire Water).

The outlook was changed to stable from negative.

Moody’s said the outlook change reflects measures that the company has taken to reduce gearing and improve its long-term interest rate exposure.

These measures, together with a continued balanced approach to external shareholder distributions, will create additional financial flexibility to mitigate against risks associated with a potentially continuing low-yield environment, which could significantly curtail future allowed regulatory returns and create particular challenges for companies, such as Yorkshire Water, with expensive, longer-term debt profiles, the agency explained.

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