In March 2025 Wessex Water issued £600 million of sustainable bonds: £350 million due 2034 at a 6.125% coupon and £250 million due 2040 at 6.50%. In January 2021 it had issued a £300 million bond at 1.25%.
Debt and gearing up
Net debt reached £3,408.6 million at 30 June 2025, up from £2,244.2 million in FY2020. Gearing, measured as net debt to regulatory capital value, rose to 72.0% in FY2025 from 66.3% in FY2023. Revenue grew too, to £598.8 million in FY2024, and by a further £92.2 million in FY2025, which the company attributes to tariff changes.
A rating step down
Moody's downgraded Wessex Water Services Limited one notch to Baa2 from Baa1 in April 2026, with a stable outlook. Fitch's last reported rating was BBB+ Stable, in November 2023.
What the settlement added
The Competition and Markets Authority set allowed revenue for 2025-30 at £3,734 million in 2022-23 prices on 10 March 2026, £106 million above Ofwat's updated figure, and raised the allowed return to 4.20% from 4.03%. The company describes the outcome as including "£271 million of additional investment".
Who pays
The indicative average annual bill for 2025-30 is £614 in 2022-23 prices, against £508 in 2024-25. Customer debt written off was £12.416 million in 2024-25.
How a 72.0% geared, Baa2-rated company allocates its 2025-30 work, which frameworks already hold it and where a c.£287m recycling project fits are set out in the full brief. The full report, Wessex Water: Utility Account Brief, is available for USD 499. For a free overview, read the Wessex Water Utility Snapshot.