LONDON, June 3 (Reuters) - Many of Thames water's bonds

slumped to record lows on Tuesday after private equity firm KKR

said it was dropping out of a rescue deal that would have seen

it inject 3 billion pounds of equity into Britain's biggest

water provider.

KKR's withdrawal sent Thames' 2040 bond down 4 pence in the

pound to 69 pence, while its euro-denominated

April 2027 bond dropped 2 euro cents to just under 68 cents

.