THAMES WATER’s credit rating was downgraded to junk status today as union GMB warned workers still have “no good news or new investment.”

S&P Global Ratings and Moody’s warned Britain’s biggest water supplier is fast running out of money and is on the brink of default as they both cut their rating of its £15 billion debt pile by five notches to the lowest possible level.

Moody’s said: “Inability to attract new equity funding may ultimately lead to a creditor-led debt restructuring or one that is imposed as part of a special administration process.”

The heavily indebted firm admitted last week that it will face a cash shortage as soon as December and has been put under special measures by water regulator Ofwat.

Thames said: “We continue to operate to the undertakings agreed with our regulator in July 2024 following the reduction in our class A debt rating to sub-investment grade and we continue to engage with creditors to consider options for the extension of our liquidity runway.

“Formal discussions with potential equity investors will commence in the coming weeks.”

GMB national officer Gary Carter said: “Thames’ junk credit rating will send further shockwaves through the workforce and create more uncertainty and instability. 

“The workforce continues to keep the show on the road despite the owners walking away.

“There’s still no good news and or new investment. 

“Thames Water is teetering on the brink; either private investors fork out or the government steps in and takes Thames into special administration. 

“This cannot go on; workers have faced increased assaults and abuse because of the water companies damaged reputations.”

Mr Carter said that GMB members need certainty and a long-term future, adding: “They’re not responsible for the mess.”