Committee publication · Correspondence · 3 June 2026
Correspondence from the Interim Chair of South East Water regarding its credit rating, dated 28 May 2026
From: Environment, Food and Rural Affairs Committee
Inquiry: Reforming the water sector
Summary
South East Water's Interim Chair notifies the EFRA Committee that the company's financing subsidiary received a credit rating downgrade from Moody's on 28 May 2026. The company is engaging with Ofwat to meet licence conditions and emphasises strong liquidity and resilience. A £2.1 billion investment programme for 2025–2030 is underway to upgrade network capacity and water quality across south-east England.
Key findings
- South East Water (Finance) Limited received a credit rating downgrade from Moody's Ratings on 28 May 2026
- The Board is constructively engaging with Ofwat to agree commitments that will secure compliance with licence conditions
- Company maintains strong liquidity and resilient capital structure; Moody's expects solid financial metrics for its assigned rating level
- Record investment of £2.1 billion planned for 2025–2030 to upgrade network capacity, water quality, and supply resilience across Kent, Sussex, Surrey, Hampshire, and Berkshire
Tone
ProceduralTopics
water-supplypublic-financeinfrastructure-investmentregulation
Key actors
Lisa Clement, Alistair Carmichael, South East Water, South East Water (Finance) Limited, Moody's Ratings, Ofwat
Notable line
“South East Water maintains strong liquidity and a resilient capital structure.”
Key Quotes
“… today South East Water's financing subsidiary, South East Water (Finance) Limited, received a credit rating downgrade from one of its two ratings agencies, Moody's Ratings.”
“The Board of South East Water is constructively engaging with Ofwat to agree certain commitments that will secure a return to compliance with its licence conditions.”
“South East Water maintains strong liquidity and a resilient capital structure. Based on current forecasts, Moody's expects the Company to demonstrate solid financial metrics for its assigned rating level.”
“… this represents a record level of investment of £2.1 billion between 2025-2030 with the help of our customers in Kent, Sussex, Surrey, Hampshire, and Berkshire.”
Source · parliament.uk record ↗