Thames Water - comment

The company is tendering for its short-dated Class-A bond and looking to sell a 20-year like-for-like replacement at UKT+340/350. The Class-A debt is not at any material risk and Class-B maturities only come in any size from 2026, when also the Kemble bond will need to be dealt with. The Kemble bond has dropped materially this month, to the point where we may want to take another look.