Investor Presentaiton
Affinity Water
The Impact of the Proposals
The Proposals are expected to have, at worst, a credit neutral impact
No Ratings Impact
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•
•
It is a precondition to implementing
the Proposals that Rating Agencies
confirm the Proposals will have no
impact on current ratings
The Rating Agencies have reviewed
the Proposals
We expect S&P will provide a RAC
letter to the Trustee
We will certify to the Trustee that the
Proposals will have no impact on
current Moody's ratings (based on
feedback received from Moody's)
Moody's and S&P both issued notes
earlier in the year with respect to the
Thames Water and Yorkshire Water
consent processes which also
sought to remove Caycos from their
financing structures. Both Rating
Agencies indicated these
transactions were "credit neutral"
Positive ESG Impact
.
Disposing of Cayco addresses the
negative perception and scrutiny that
is being directed at AW and other UK
water companies for the use of
offshore financing vehicles
Disposing of Cayco will improve
transparency for creditors, the
regulators and customers as well as
reducing administrative burden
No Tax Impact
.
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NewCo will be a securitisation
company for the purposes of UK tax
law so the current tax status of the
Financing Group will not change
following implementation of the
Proposals
Consequently there should be no
adverse UK tax impact on the
Financing Group from the Proposals
No Credit Impact
•
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Security and Guarantee
arrangements will be replicated for
NewCo
No changes are being made other
than those ancillary to the
incorporation of NewCo and
substitution of Cayco
As such no impact is expected on
the credit quality of bonds
substituted
Supporting materials demonstrate no
adverse impact on bondholders (see
package on page 6)
All conditions precedent outlined in
the Bond Trust Deed for issuer
substitution will have been met and
confirmed by the Trustee
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