Headlines

Thames Water’s debt has been downgraded as the struggling utility company seeks to secure £3bn in emergency funding to stave off collapse, after it emerged that the government has approached potential administrators, The Guardian reported. The rating agency Moody’s downgraded the company’s debt rating, and increased its view of the probability of default, changing its outlook on Thames Water from stable to negative. Moody’s said that it downgraded Thames as it believes its proposed financial plans “do not provide an attractive risk-return balance for existing or new investors”.

A Hong Kong court delayed a hearing on Sino-Ocean Group Holding’s restructuring agreement with lenders, as the state-linked builder awaits a decision later this month on a UK case involving a debt plan for all creditors, Bloomberg News reported. Sino-Ocean earlier said that a group of loan lenders holding 86.2 percent of its debt had voted in favour of the Hong Kong scheme, passing a threshold of 75 per cent required for the restructuring arrangement in the city. The next Hong Kong hearing is set for Feb 19, “given the pending decision of the English Court”, according to a company filing.

A creditor to an overseas arm of China’s largest construction company is asking a U.S. bankruptcy court to help investigate whether the firm may have committed fraud, Bloomberg News reported. China Construction America Inc. filed for chapter 11 in New Jersey last month. The company is a subsidiary of state-owned China State Construction Engineering Corp. The largest unsecured creditor of the case, BML Properties Ltd., wants the court to appoint an examiner to look for potential fraud and misconduct, according to a motion filed on Thursday.

The bankruptcy court in Mumbai approves IHL Lifesciences Pvt Ltd's acquisition of the listed firm Parental Drugs India Ltd, the Economic Times of India reported. Before the tribunal’s approval, the Company's Committee of Creditors (CoC) had approved IHL Lifesciences’ resolution plan for Parental Drugs India with 100% of the vote.

India’s central bank purchased a large quantum of bonds last week, with the monetary authority stepping in to ease a cash crunch that is currently at its widest level in more than a decade, Bloomberg News reported. Central bank data released after local trading hours on Friday showed that the Reserve Bank of India purchased government securities worth 101.75 billion rupees ($1.2 billion) in the week ended Jan. 17. This marks the highest weekly purchase since August 2021, archival central bank data showed.

Versorgungswerk der Zahnärztekammer Berlin (VZB), the pension fund for dentists in Berlin, Bremen and the state of Brandenburg, is facing losses following an investment made in the now insolvent insurtech start-up Element Insurance, Investment & Pensions Europe reported. The pension scheme is one of the main investors in the Berlin-based start-up, with a 27.14% stake in the company, according to Element Insurance’s 2023 solvency report, the latest available.

Russia's coal industry is in crisis as mines face bankruptcy against the backdrop of low world prices, it has been reported, according to Newsweek. Business newspaper Kommersant said that the Russian government is trying to tackle the industry's plummeting exports and revenues and that state development corporation VEB.RF is poised to take control of failing assets.

The Bank of Japan raised interest rates on Friday to their highest since the 2008 global financial crisis and revised up its inflation forecasts, underscoring its confidence that rising wages will keep inflation stable around its 2% target, Reuters reported. The decision marks the BOJ's first rate hike since July last year and comes days after the inauguration of U.S. President Donald Trump, who is likely to keep global policymakers vigilant ahead of potential repercussions from threatened higher tariffs.

Brazil’s annual inflation slowed less than expected in early January despite a drop in energy costs, highlighting the challenges facing policymakers as they prepare to raise the interest rate again next week, Bloomberg News reported. Official data released Friday showed consumer prices rose 4.5% from a year earlier. On the month, they increased 0.11%. The central bank has pledged to deliver its second straight interest rate hike of 100 basis points next week — which would lift the benchmark Selic to 13.25% — as policymakers maneuver to control inflation.

Austria has arrested Rene Benko, the founder of fallen property group Signa, on suspicion of trying to hide assets from insolvency administrators and creditors, prosecutors said on Thursday. Benko, 47, was arrested at his villa in Innsbruck early on Thursday, Austrian media reported. His lawyer, Norbert Wess, said that a court would need to decide within 48 hours whether his client should remain in custody. Benko has previously denied allegations made against him.