Key Takeaway: Moody's downgraded Southern Water to junk status , citing financial and operational underperformance, compounding the broader issues facing the UK water sector. Southern Water Ltd’s credit rating was downgraded to junk by Moody’s , with a warning of potential further cuts due to its weak performance history and financial challenges. This downgrade impacts the company’s ability to raise the £4 billion in new debt and £650 million in equity required for its capital plans. The UK water industry is facing heightened scrutiny due to concerns over chronic leaks, sewage spills, and high-interest rates. Southern Water, which supplies over two million people in England, could face severe penalties from the regulator Ofwat , which may limit funds for essential upgrades. Following the downgrade, Southern Water’s 2026 bonds dropped 2.7 pence to around 85 pence on the pound. Despite the rating cut, Southern Water assured customers that services would continue unaffected, hig
Key Takeaway: Global oil supply is expected to exceed demand by over 1 million barrels per day (bpd) in 2025, even if Opec+ production cuts persist, according to the International Energy Agency (IEA).
In its latest oil market report, the IEA forecasts a supply surplus for 2025, with global demand projected to rise by 990,000 bpd next year. This outlook reflects weakened Chinese demand, which saw a year-on-year drop of 270,000 bpd in the third quarter, marking six months of consecutive declines through September.
For 2024, the IEA raised its demand growth forecast slightly by 60,000 bpd to 920,000 bpd, driven by stronger-than-expected gasoil demand in OECD nations during the third quarter. The report highlights a shift toward a potential oversupply, underscoring the challenges for oil producers facing tepid demand growth in key markets like China.
Comments
Post a Comment