A shift in the preferred method of measuring inflation in the UK poses financing risks for key infrastructure sectors such as water and energy, according to the credit rating agency Moody's, with implications for the institutional investors who own many of the assets.

On December 10, the UK water regulator, Ofwat, unveiled its latest proposals for reforming the water supply and sewerage markets, known as 'Water 2020'. In its review of the proposals on January 14, Moody's warned they might prove "credit negative" for the sector "over the medium to long term".