Thames Water - comment

We struggle to imagine a world in which Thames & Valley Water (The core accounts in the As and fresh money, including Elliott, Silverpoint, BlackRock and others) would fail to extend another £2.4bn, for which a meeting is set today, but it’s apparently the subject of much discussion in the media. In that context, however, we assume a further transfer of rights from non-participating As to the Thames & Valley group. We expect that to be the tight end of the discussion, more than whether water prices rise in the next 5 years, as some disoriented campaign groups are calculating. Meanwhile, Ofwat has hired E&Y to formally monitor Thames Water.