‘Even Puerto Rico paid its bill’: Thames Water creditor suggests backers are safe

Creditors of US territory's were protected during municipal default, says Assured Guaranty's chief executive

The largest creditor to struggling water company Thames Water has said it is confident that it will not lose money, joking that the UK was comparable to Puerto Rico, which paid lenders to its water company despite a crippling debt crisis.

Dominic Frederico, the chief executive of US insurer Assured Guaranty, suggested that the UK government would not impose losses on creditors. The company - which has an exposure of $2.4bn (1.8bn) to Thames Water's bonds - was well protected in terms of the legal structure" from losing money, he told investors on a call on 8 August.