S&P lowers Portsmouth Water view to negative

S&P said it revised the outlook on Portsmouth Water Ltd. to negative and affirmed the BBB long-term issuer credit rating and BBB issue ratings on its senior secured debt and its revolving credit facility.

Portsmouth Water submitted its business plan to the U.K. water regulator (Ofwat), S&P explained.

The initial feedback indicates that the company will struggle to maintain credit metrics in line with its current rating from the start of the next regulatory period due to high capital expenditure and lower bills, the agency said.

The outlook revision also reflects an expectation that Portsmouth Water's financial metrics will come under pressure in the next regulatory period, which runs from 2020 to 2025, S&P said.

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