S&P revises Wessex Water view to negative

S&P said it revised to negative from stable the outlook on Wessex Water Services Ltd.

The agency affirmed the long-term issuer credit rating on Wessex Water at BBB+.

At the same time, the agency affirmed the BBB+ issue rating on the company's senior unsecured notes.

“The outlook revision reflects our expectation that the credit metrics of Wessex Water may weaken in the next regulatory period, such that the company may not post funds from operations (FFO) to debt above 9% on a sustainable basis from the fiscal year 2021 onward,” S&P said in a news release.

“Our analysis of the business plan Wessex Water submitted to Ofwat in September 2018 shows materially lower credit metrics because of lower profitability and higher capital expenditure levels, compensated to some extend by lower dividend payments.”

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