RBC Downgrades Pennon Group Amid Challenging AMP8 Outlook

By EC Assets · Published 9 October 2026

RBC downgraded Pennon Group due to a challenging AMP8 outlook. The British water utility previously announced a approximately £550 million rights issue and a dividend cut. This news led to a significant drop in the company's share price. Pennon Group shares plunged more than 20% following the announcement. The company's stock later recovered some of those losses. On Wednesday, Pennon Group shares fell over 16%. The company stated on Wednesday it would raise about £550 million through a fully underwritten rights issue. It also rebased its dividend. This action is part of an overhaul by the new CEO for water upgrade funding. The rights issue and dividend cut underpin a strategic overhaul for the water group. Citi and Deutsche Bank both rated Pennon Group shares as "buy" despite the dividend cut. Pennon Group is listed on the LSE with ticker PNN and OTC with ticker PEGRY. This article is intended for informational purposes only. It does not constitute investment advice.