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Thames Water (Baa3): Kemble Write Off

UTILITIES

Negative for sentiment. Big picture, the main credit driver remains expected size of haircuts under SAR.


• *THAMES WATER'S TOP INVESTOR WRITES OFF STAKE AS CRISIS WORSENS – bbg

• This appears to confirm any faint hope of Kemble shareholders reaching an agreement with Ofwat has gone. Follows news that Omer’s board representative stepped down yesterday.

• The central scenario of SAR now seems inevitable.

• €31s have sold off ~1pt in recent sessions, following some recovery from the lows on reports of distressed investors building stakes.

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