Water companies in England and Wales will require around £272 billion for enhancement expenditure in 2025-50 to advance services and improve performance, according to an estimate from Moody's Investors Services based on the companies' own forecasts.

 S&P Global Ratings has this morning placed its 'BBB' and 'BB+' issue ratings on Thames Water's class A and class B debt on CreditWatch with negative implications, indicating S&P could lower the ratings by one notch in the absence of sufficient clarity on the management transition and timing of additional equity support from shareholders.

Fitch Ratings has downgraded Thames Water’s holding company Kemble Water Finance Limited's (Kemble) Long-Term Issuer Default Rating (IDR) to 'B' from 'B+' and senior secured debt rating to 'B' from 'B+'. The Outlook on the IDR is Negative.

Water UK, the organisation which represents all the UK water companies, has questioned Ofwat’s proposed approach to funding bioresources activities at PR24, saying that this represents “the considered and consolidated views” of its members.

Moody’s Investor Service is forcasting a stable outlook for UK water companies over the next 12 to 18 months. 

Yorkshire Water has announced its intention to reduce borrowing and simplify finances as part of a long term drive to enhance service for customers. The utility's offshore banking arrangements, which are used in the sector to manage high levels of borrowing, are to be wound up.