Fitch warns of dividend pressure
- From: Vol 11, Issue 6 (June 2010)
- Category: General
- Region: Europe
- Country: United Kingdom
- Related Companies: Ofwat
The ratings agency has outlined a series of challenges that could put further pressure on dividend payouts amongst the UK water utilities.
A combination of rising bad debts and the cost of adopting private sewers could force some UK water and sewerage companies to cut dividends before 2015 to maintain their credit standing, ratings agency Fitch has warned.
While the industry regulator Ofwat has made both items subject to the IDoK mechanism – which can allow companies to re-set tariffs to take account ...
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