Ofwat confirms Thames Water actions after firm's credit downgrade

23rd Aug 2024 09:40

(Sharecast News) - Water regulator Ofwat confirmed the immediate implementation of new measures on Friday, to address Thames Water's recent loss of its investment-grade credit ratings.

The action followed a public consultation, and would involve several critical steps designed to improve the company's financial and operational stability.

Key among the measures was the appointment of an independent monitor to closely track Thames Water's progress, particularly in relation to its ongoing transformation plan.

The regulator said the monitor would report back to Ofwat regularly, and would have full access to the company's internal information.

Thames Water was also required to develop and implement a robust operational business plan aimed at turning around its performance.

Additionally, the company was required to execute an equity raise to strengthen its financial position.

Additionally, Thames Water's board would see the introduction of new non-executive directors as part of the commitments.

The measures would remain in force until the company successfully regained two investment-grade credit ratings, Ofwat said.

Reporting by Josh White for Sharecast.com.