Thames Water has been placed under special measures by the regulator Ofwat after its credit rating was downgraded to 'junk' status by Moody's and S&P, constituting a breach of its operating license. As a result, Thames Water must appoint an independent monitor to oversee its progress and develop a turnaround plan aimed at restoring its financial stability. The regulator has mandated that the company also take steps to raise equity and add new non-executive directors to its board. Ofwat's chief executive David Black emphasized the urgency for Thames to remedy its operational issues and secure investor backing to regain its investment-grade credit rating. This decision follows Thames Water being fined £104 million for its poor sewage management practices, which included discharging sewage into rivers excessively. A public consultation on these new commitments will take place, with responses due by August 16.