S&P: Anglian Water class B debt to stable view

S&P said it revised the outlook on Anglian Water Services Financing plc’s subordinated class B debt to stable from negative.

The agency also affirmed the A- issue credit rating on its debt class A, along with the BBB issue credit rating on its subordinated class B debt.

The outlook on the senior secured class A debt issue remains stable.

The agency said that four of the senior secured class A bonds issued by the company have an unconditional and irrevocable guarantee provided by Assured Guaranty (London) Ltd.

S&P said it rates monoline-insured debt issues at the higher of the rating on the monoline and the S&P underlying rating, called a SPUR.

The long-term debt ratings on the four insured bonds reflect the SPUR, which is A-, the agency explained.

The outlook revision on the subordinated class B debt considers some recovery in the cash flow coverage metrics of Anglian Water Services Ltd., compared with previous expectations, S&P said.

Anglian Water benefited from slightly better operating margins and lower debt refinancing over the year, but the key driver of the improved metrics was lower-than-expected inflation for fiscal year 2017, the agency said.

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