Moody's raises Southern Water's outlook after Macquarie's $1.63 billion boost
(Reuters) -Ratings agency Moody's on Thursday raised Southern Water's outlook to stable from a review for downgrade, after the British water utility secured an equity lifeline from Australia's Macquarie and a credit refinancing to avert a debt crisis.
Moody's also confirmed Southern Water's rating at 'Ba1'.
The firm's bonds were up on Thursday, adding to the sharp jump they saw after a consortium led by Macquarie Asset Management agreed to inject up to 1.2 billion pounds ($1.64 billion) in Southern Water on Tuesday.
While the utility faces performance penalties from Britain's water regulator and potential cost overruns, the equity injection provides Southern Water with enough buffer to maintain its credit quality, Moody's said in a report.
($1 = 0.7331 pounds)
(Reporting by Yamini Kalia in Bengaluru and Marc Jones in London; Editing by Shreya Biswas)
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