Rating

South East Water (Finance) Limited

Response to S&P ratings action

South East Water (Finance) Limited ("SEWF"), the financing subsidiary of South East Water Limited ("South East Water" or the "Company"), notes the credit rating downgrade announced today, Friday 24 July) by S&P Global Ratings ("S&P"). As a result of the ratings action, SEWF's backed and underlying senior secured ratings have been lowered to BB+ from BBB-.

South East Water continues to maintain strong liquidity and a resilient capital structure. As announced today, the Company has agreed terms for £200,000,000 of new liquidity under an agreement to backstop a future bond issuance.

This additional liquidity follows the Company's earlier announcement that it has agreed a £30.5 million redress package with Ofwat. The agreement concludes Ofwat's investigations into the Company's supply interruption events; South East Water's compliance with Licence Condition G following two supply events during the winter of 2025/26; and its breach of Licence Condition P26, which requires the Company to maintain two investment-grade credit ratings.

South East Water remains committed to delivering a company-wide transformation programme designed to improve operational performance and materially strengthen the resilience of its network. This will be supported by the largest investment programme in the Company's history, totalling £1.9 billion between 2025 and 2030.

Enquiries

James Grant [email protected]

Craig Stansfield [email protected]

Aman Randhawa [email protected]

ENDS