Business
Credit Rating Downgrade from S&P
Credit Rating Downgrade from S&P.
About this update from United Utilities Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 0998E\n United Utilities Group PLC\n 25 February 2020\n \n \n \n United Utilities Group PLC - LEI: 2138002IEYQAOC88ZJ59\n United Utilities PLC - LEI: 213800KYT12UFB2VE455\n United Utilities Water Finance PLC - LEI: 213800313INX42GDLR44\nUnited Utilities Water Limited - LEI: 213800RQ5FMB2GQ69174\n Credit Rating Downgrade from S&P\n United Utilities notes the decision of S&P Global Ratings (\"S&P\") to downgrade United Utilities PLC's (\"UU's\") and United Utilities Water Limited's (\"UUW's\") credit ratings one notch which was announced on 25 February 2020.\n Following the announcement, S&P's long-term issuer credit ratings for UUW and UU have been downgraded from A- to BBB+ (stable outlook) and BBB+ to BBB (stable outlook), respectively, and for Notes issued by UUW and UU have been downgraded from A- to BBB+ and BBB to BBB-, respectively.\n Commenting on the ratings action from S&P, Russ Houlden, Chief Financial Officer of United Utilities Group PLC (\"UUG\"), said:\n \"On 29 January 2020, when we announced acceptance of the Final Determination in respect of Ofwat's PR19 price review, we also announced the group's dividend policy, capital structure and credit ratings targets for the AMP7 regulatory period.\n \"We have consistently maintained a robust capital structure, with UUG gearing, measured as group net debt to regulatory capital value (\"RCV\"), remaining stable over the last ten years and comfortably within our target range of 55 to 65 percent. We confirmed that we would retain this target range over AMP7 in order to maintain efficient access to debt capital markets throughout the economic cycle.\n \"With regard to credit ratings targets, we announced that assuming no significant changes to existing ratings agency methodologies or sector risk assessments, the group aims to maintain a long-term issuer credit rating for UUW of at least A3 with Moody's, a senior unsecured debt rating for UUW of at least A- with Fitch, and a long-term issuer credit rating for UUW of at least BBB+ with S&P. We also said that we expected S&P to resolve its negative outlook on the group's ratings (that was assigned in August 2019) during February 2020. \n \"Both Moody's and Fitch use net debt to RCV along with an interest cover ratio as their primary credit metric...