Thames Water credit rating slashed as administrators approached

Moody's changes outlook on firm from stable to negative as financial plans do not provide attractive risk-return balance'

Thames Water's debt has been downgraded as the struggling utility company seeks to secure 3bn in emergency funding to stave off collapse, after it emerged that the government has approached potential administrators.

The rating agency Moody's downgraded the company's debt rating, and increased its view of the probability of default, changing its outlook on Thames Water from stable to negative.