BRIEF-Moody's Downgrades Thames Water's CFR To Caa3, Stable Outlook

Jan 23 (Reuters) - Moody's:

• MOODY'S RATINGS DOWNGRADES THAMES WATER'S CFR TO CAA3, STABLE OUTLOOK

• MOODY'S: DOWNGRADED BACKED SENIOR SECURED DEBT RATINGS OF THAMES WATER'S GUARANTEED FINANCE SUBSIDIARY THAMES WATER UTILITIES FINANCE PLC TO CAA3

• MOODY'S: AFFIRMED THAMES WATER UTILITIES FINANCE'S SUBORDINATED DEBT RATINGS AT C

• MOODY'S: THAMES WATER DOWNGRADE REFLECTS VIEW THAT FINAL DETERMINATION DOES NOT PROVIDE ATTRACTIVE RISK-RETURN BALANCE FOR EXISTING OR NEW INVESTORS

• MOODY'S: THAMES WATER CFR REFLECTS LIKELIHOOD OF NEAR-TERM DISTRESSED EXCHANGE, RISK OF CREDITORS LOSSES UNDER INITIAL DEBT RESTRUCTURING

• MOODY'S: THAMES WATER'S BUSINESS RISK REMAINS SUPPORTED BY CO'S POSITION AS MONOPOLY PROVIDER OF ESSENTIAL WATER & SEWERAGE SERVICES

• MOODY'S: ESTIMATE THAMES WATER WILL FACE AROUND £76 MILLION OF ANNUAL PENALTIES ON AVERAGE UNDER THE OUTCOME DELIVERY INCENTIVES FRAMEWORK

• MOODY'S: CURRENTLY ESTIMATE THAT THAMES WATER'S RISK OF ULTIMATE CREDITOR LOSSES COULD BE HIGHER THAN 10%

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