Free Trial

Thames Water: No Cash Injection

UTILITIES

• Thames shareholders will not inject the planned £500mn equity this month.

• Potentially a negotiation tactic with Ofwat, but it seems more likely that they don’t see value in further investment here.

• Kemble has confirmed they won’t pay interest and principal on the loan due next month triggering a default.• With Kemble bonds already below 30c recently, the market will not be hugely surprised, but we expect further downside pressure with uncertainty on valuation into a presumed restructuring.

• THAMES ringfenced bonds 20-30 wider at the open.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.