LONDON, July 15 (Reuters) - The financial future of

Britain's biggest water firm Thames Water looks increasingly

uncertain, investment bank JPMorgan warned on Monday.

Analysts at the bank said they were concerned that UK

regulator Ofwat's tough stance on financial resilience laid out

last week may increase balance sheet risks in UK water sector

and that Thames was now facing particular risks.

"Overall, our level of concern about Thames Water's

financial position is at new highs, and we are unsure if Thames'

situation can be resolved without a disruptive outcome for

creditors," they wrote.