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Severn Trent (SVTLN Baa2/BBB/BBB): New Issue FV

CREDIT SUPPLY
  • GBP Benchmark 14Y Sust. Fixed UKT+170-175.

  • We see FV at Z+180, 5.7%, UKT+136a.
  • That is based on pre-IPT levels; secondary is another 10bp wider today on top of 5bp of widening since the mandate. The sector is pressured with the regulatory backdrop and fallout from Thames Water, so we expect this to come with a concession.

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