Thames Water's credit ratings have been cut further after warning that it only had enough cash to last until December.
Both Moody’s and S&P announced the cuts overnight, following the company's announcement last week, saying a default could be around the corner.
S&P, which reduced Thames’ class A and B debt ratings to ‘CCC+’ and ‘CCC-’ respectively, said: “This announcement is contrary to our previous expectation in July, based on the company’s disclosure, that liquidity would last the company through May 2025.”
Moody’s also pointed to the “significantly tighter liquidity position than previously expected,” warning this could lead to default soon.
“This will likely lead in the near term to a distressed exchange, where creditors agree to some form of amendment or extension of credit terms that results in a loss,” Moody’s said.
“A distressed exchange of this type constitutes a default by Moody’s definition.”