Moody’s lifts Bristol Water view to stable

Moody’s Investors Service said it affirmed the Baa1 rating on the £40 million secured guaranteed RPI-linked bonds due 2041 issued by Bristol Water plc.

Moody’s also changed its outlook to stable from negative.

The outlook revision follows the publication of Bristol Water’s final price determination for the five-year regulatory period, Moody’s said.

The final determination supersedes the price determination published in December 2014 by the Water Services Regulation Authority, which was rejected by Bristol Water, the agency said.

The ratings and stable outlook reflects some improvement in Bristol Water’s price determination following the price reduction of 16%, as compared to the 19% cut determined by Water Service authority, along with the company’s plan to cut spending through 2020 by delivering further efficiencies and implementing risk-based assessments to reduce investment in maintenance, Moody’s said.

The agency said it expects the company’s ratios will remain commensurate with the guidance for the current rating.

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