Fitch Ratings sees an increasing risk to creditors from Southern Water Ltd’s outsize swap portfolio, which is creating liabilities that outrank the claims of even senior bondholders, Bloomberg News reported. The ratings agency downgraded the UK utility to one step above junk status with a negative outlook on Tuesday, citing “challenging funding conditions” and the risk of default should it fail to maintain two investment-grade ratings.

For some in the investment banking industry, the UK’s latest proposals to deregulate its capital markets may be a step too far, Bloomberg News reported. In what would be one of its boldest moves to attract listings, Britain’s Financial Conduct Authority has proposed lifting the threshold at which London-listed firms raising additional funds must produce a prospectus — a lengthy document detailing financial performance and potential business risks — from 20% of their share capital to 75%.

It’s “crystal clear” that European Central Bank interest rates will be reduced further but officials shouldn’t rush the process due to uncertainties including rising trade tensions and global conflicts, according to Vice President Luis de Guindos, Bloomberg News reported. “My impression is that we will continue reducing the restriction of our monetary-policy stance over the next months and quarters,” Guindos told Bloomberg Television on Wednesday.

Iceland’s central bank accelerated its easing campaign with a half-point reduction in western Europe’s highest borrowing costs as price pressure is slowing, Bloomberg News reported. Policymakers at Sedlabanki in Reykjavik lowered the 7-day term deposit rate to 8.5% on Wednesday, the biggest cut in more than three years. The decision was in line with the expectations of the north Atlantic nation’s largest banks, Islandsbanki hf and Landsbankinn hf, as well as the central bank’s survey of market participants.

In October 2024, there were 116 company insolvencies registered in Scotland. At the same time, the total number of company insolvencies was comprised of 50 CVLs, 60 compulsory liquidations, five administrations and one receivership appointment. There were no CVAs, the Scottish Financial News reported. However, it must be noted that the total insolvency rate in Scotland in the 12 months to October 2024 was 53.1 per 10,000 companies on the effective register, marking a 1.5% decrease from the preceding 12 months ending October 2023.

Thames Water extended the deadline in its search for billions of pounds in new equity, as it demands more from potential investors on how they plan to help turn around the beleaguered utility, Bloomberg News reported. Investors originally had to submit indicative, non-binding bids on Nov. 28, but that has now been extended by a week to Dec. 5. The utility last week demanded further details on how any investor plans to improve performance, one of the people said.

Swedish debt collector Intrum is asking a U.S. bankruptcy court to help reduce its debt, but will have to overcome a group of bondholders who allege it is misusing chapter 11, WSJ Pro Bankruptcy reported. After Intrum filed for bankruptcy in Houston on Friday, creditors holding some of its bonds due in 2025 asked for the chapter 11 case to be dismissed. The bondholders say the company manufactured its bankruptcy venue by creating a U.S. affiliate last month, six days before seeking creditors’ votes on its restructuring plan, according to papers filed by the bondholders with the U.S.

The Swedish government does not plan to take a stake in battery maker Northvolt, Sweden's Minister for Energy, Business and Industry and Deputy Prime Minister Ebba Busch told Reuters on Tuesday. The statement echoed that of Prime Minister Ulf Kristersson who has also said the government does not plan to invest in the cash-strapped battery maker. "There are huge investments happening in the green transition in Sweden whether or not the Northvolt project gets fully completed or not," Busch told Reuters.

Insolvency specialist Begbies Traynor has warned that higher wage bills and prospects for fewer interest rate cuts will keep U.K. company failures at high levels, as it revealed its own cost hit from the recent Budget, the Independent reported. The group said that it is set to face an extra £1.25 million a year from next April after the Chancellor last month announced moves to hike employers’ national insurance contributions. Begbies said it was “reviewing options to mitigate the impact where possible”.

Ireland-based clean hydrogen solutions developer Fusion Fuel Green Plc has filed for insolvency for its Portuguese subsidiary after a USD-33.5-million (EUR 31.6m) funding deal with investor Hydrogenial SA has failed to complete, RenewablesNow.com reported. As advised by the insolvency counsel after paperwork submission, Fusion Fuel has initiated a claim in Portugal against the investment firm and its principal, Norbert Bindner, for damages incurred due to Hydrogenial’s breach of their agreement, a press statement says.