YORKSHIRE Water will spend billions of pounds over the next five years to improve the quality of the region’s water supply.
The company highlighted its investment plans in response to a report from Moody’s Investors Service, which stated that Yorkshire Water Services has a stable rating outlook.
Moody’s said that it believed Yorkshire Water’s management will be able to manage the risks associated with its derivatives portfolio at the Baa2 “corporate family rating” level.
The report added: “The stable outlook also reflects Moody’s view that the current low interest rate environment is unlikely to persist over the medium term.”
Moody’s said the ratings could be upgraded if the risk exposure of Yorkshire Water’s derivatives portfolio reduces, or the company manages to create additional financial flexibility by reducing leverage.
A Yorkshire Water spokesman added: “Yorkshire Water is currently reporting best ever levels of performance and has robust investment plans in place to deliver further service and environmental improvements over the period 2015 to 2020. Following a lengthy, in-depth and challenging price review process, our economic regulator Ofwat has just given us the green light to invest an additional £3.8bn in the Yorkshire region over the
next five years.
“This will deliver better quality drinking water, cleaner rivers and higher standards of customer service, ensuring we take a significant step forward towards achieving our existing 25-year business objectives.”
Yorkshire Water’s annual report and accounts will be released in July.