S&P pushes Thames Water ratings deeper into junk territory on debt restructuring plans

Oct 27 (Reuters) - Global ratings agency S&P downgraded Thames Water Utilities by a notch to "CCC-" on Tuesday, saying the UK water supplier's plans to extend debt maturities and increase borrowing under a super senior facility reflected a distressed financial position.

Here are some details:

• Earlier this month, Thames Water said it needed to increase its emergency funding facility by £2.4 billion, to keep operating into autumn 2027

• S&P said the move comes amid a prolonged debt restructuring and weak liquidity against a sizable capital expenditure program and recurrent negative free operating cash flows

• The agency also lowered Thames Water Utilities Finance's rating to "CCC-" from "CCC"

• The utility, saddled with about £20 billion in debt, has been fighting for survival after years of inadequate investment in its ageing infrastructure

• S&P held a "negative" outlook on Thames, suggesting that it could view an increase in super senior debt and a near-term extension of debt maturities without adequate compensation to creditors as a default

(Reporting by Sri Hari N S in Bengaluru; Editing by Shreya Biswas and Shinjini Ganguli)