Southern Water Faces Financial Turmoil as Moody’s Downgrades Debt to Junk

The downgrade raises concerns over Southern Water's ability to secure necessary funding amidst regulatory scrutiny and operational challenges.

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.