Northumbrian Water’s bonds widened slightly on Monday and Tuesday, after Cheung Kong Infrastructure Holdings said on Monday that it was assessing a potential cash offer for the UK utility. But bond investors are at least as likely to welcome a takeover as fear it.
Like all UK utilities, Northumbrian Water Groups operating companies are regulated, so have to maintain their ratings at a level that is comfortably investment grade. For the water industry, this is interpreted to mean high triple-B.
Northumbrian Water Ltd is rated Baa1/BBB+/BBB+ (all stable), while Northumbrian Water Finance Plc,