Thames credit ratings cut to lower levels of junk as default fears grow

Thames Water's debt rating has been slashed to the lower levels of junk by two major credit rating agencies, piling further pressure on the UK's biggest water company, which is rapidly running through cash and fighting to stave off renationalisation.

- Julia Kollewe

S&P Global Ratings and Moody's said the utility was running out of money and on the brink of default.

S&P cut its rating on Thames's £15bn top-ranking debt pile by five notches to CCC+, taking it into the triple-C category that is considered very risky. Thames lost its investment-grade credit rating in July.

Moody's also slashed the firm's rating by five notches, to Caal from Ba2, saying: "Inability to attract new equity funding may ultimately lead to a creditor-led debt restructuring or one that is imposed as part of a special administration process."