Thames Water breaches licence as part of its debt downgraded to junk

Move by ratings company Moody's puts Thames in breach its operating licence but Ofwat likely to hold off on large fine

Thames Water has breached its licence to supply water to nearly 16 million people after some of its debt was downgraded to junk status.

The regulator Ofwat could now fine Thames, the country's largest water monopoly, up to 10% of its annual turnover, equating to hundreds of millions of pounds. However, since the company is already teetering close to temporary renationalisation, Ofwat is likely to hold off on any immediate large fines.