Inflation and cost of capital threaten WASCs
- From: Vol 10, Issue 7 (July 2009)
- Category: General
- Region: Europe
- Country: United Kingdom
- Related Companies: Moody’s, Northumbrian Water, Ofwat, Sutton & East Surrey Water and Welsh Water
The owners of UK water and sewerage companies may be forced to accept lower dividends if Ofwat takes a hard line later this year, a new Moody’s report warns.
A reduction in the allowable cost of capital, combined with low inflation between 2010 and 2015, could mean that some large UK water and sewerage companies (WASCs) will struggle to meet their investment programmes over the period and will have to cut dividends, rating agency Moody's has warned.
In their final business plans for 2010-15, the 10 WASCs said ...
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