Moody’s has lowered its credit outlook for the water sector from stable to negative due to inflationary cost pressures. Although sustained high inflation is typically credit positive for water companies, the ratings agency said the lag between rising costs and inflationary increases to their revenues and regulatory capital value can result in volatile metrics. It said water companies are also exposed to any mismatch between headline inflation rates and their actual costs.
Moody’s gives negative credit outlook for water sector
