Fitch Ratings is warning that some UK water companies will “find it challenging” to maintain their existing credit ratings for AMP8 - and those who fall to do so will be subject to a regulatory cash-lock up.

The Universities Superannuation Scheme (USS) has described its experience of investing in Thames Water as “deeply disappointing” and is warning that the experience will “influence our future approach to investing both in economically regulated assets and more broadly.”

Moody's Ratings has today downgraded to Ba2 from Baa3 the long-term corporate family rating (CFR) of Thames Water Utilities Ltd. 

Ofwat has denied agreeing a £150 million dividend payment by Thames Water, according to a report on the BBC Radio 4 Today news programme this morning.

The UK water sector's total expenditure (totex) is likely to more than double in the upcoming AMP8 2025-2030 regulatory period, according to Fitch Ratings latest UK Water - Relative Credit Analysis report released this morning.

The new direct procurement for customers (DPC) framework introduced by U.K. water regulator Ofwat offers a good opportunity for U.K. water utilities to share risks with project companies, contractors, and customers, according to S&P Global Ratings.

Moody's Investors Service says it expects Thames Water to get an AMP8 decision from water sector regulator Ofwat which will enable it to secure the future investment it needs from shareholders.