Overview
- Moody's downgraded Southern Water's credit rating to junk status, reflecting ongoing financial and operational struggles.
- The downgrade jeopardizes Southern Water's plans to raise £4 billion in new debt and £650 million in equity for infrastructure improvements.
- Southern Water, serving 4.7 million customers, risks breaching debt covenants due to the loss of its investment-grade rating.
- The company has faced criticism for environmental failings, including significant fines for sewage dumping.
- Southern Water maintains it has strong liquidity, with over £1.5 billion raised in debt and £1.6 billion in equity since 2021.