No government wants water companies with long term debt requirements on its balance sheet

  • 📰 The Yorkshire Post
  • ⏱ Reading Time:
  • 22 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 12%
  • Publisher: 66%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

Water is in the news, but not only because of flooding but also through the travails of Thames Water, one of the eleven regional monopoly regulated water and sewerage companies (WASC) in England and Wales, like our own Yorkshire Water.

These companies were set up as privatised utilities in 1989. Ofwat regulates their performance and behaviour as an economic regulator through league tables of comparators and five year business plans. It is Ofwat’s job to ensure a well run WASC can access the necessary finance through an investment grade credit rating, thereby appealing to international investors in the corporate bond and equity markets.

The industry suffered for many years as a nationalised industry by being down the pecking order for investment against the NHS, education et al, as would still be the case today given the size of government borrowing post-Covid. All water companies have high levels of typically long term debt. Unfortunately post-Covid and the onset of significant inflation, interest rates have risen sharply in a way that was unforeseen.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 39. in CA
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Thames Water crisis deepens as holding company defaults on debtThe crisis enveloping Thames Water has deepened after its holding company announced it had been unable to meet debt repayments.
Source: SkyNews - 🏆 35. / 67 Read more »