Fitch cuts Wales & West, Yorkshire Water

Fitch Ratings said it downgraded the class B debt ratings of Wales & West Utilities Finance plc and Wales & West Utilities Ltd. to BBB-/rating watch negative from BBB/RWN. Fitch also lowered the class B debt rating of Yorkshire Water Finance plc, the finance vehicle of Yorkshire Water Services Ltd., to BBB- from BBB with a stable outlook. The class B debt is subordinated.

“The downgrades are a result of a sector-wide review of large derivative liabilities across Fitch-rated U.K. regulated networks. They reflect our expectation of structurally low long-term interest rates, which will continue to drive substantially negative mark-to-market (MTM) index-linked (IL) swap liability for WWU and YWS,” Fitch said in a press release.

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