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<p>Water companies are allowed to raise debt to fund the delivery of their services.</p><p>
</p><p>Ofwat, as the independent economic regulator, assesses and monitors the financial
resilience of each company, including levels of debt, on an individual and ongoing
basis and challenges companies where they identify this is needed.</p><p> </p><p>Over
recent years, as investment requirements have risen, Ofwat has taken further steps
to strengthen the financial resilience of companies. This includes increasing its
financial monitoring and improving levels of reporting transparency. As part of this
work, Ofwat produces an annual <a href="https://eur03.safelinks.protection.outlook.com/?url=https%3A%2F%2Fwww.ofwat.gov.uk%2Fregulated-companies%2Fresilience-in-the-round%2Fmonitoring-financial-resilience%2F&data=05%7C02%7Cpqtransfers%40defra.gov.uk%7C404fd2dfae6b44bafb2c08dc3c55f362%7C770a245002274c6290c74e38537f1102%7C0%7C0%7C638451587045800154%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C0%7C%7C%7C&sdata=9sb30LLZHaJqip5l8HtMBnlqmc3jKOo%2Bk%2FHMdoB%2FlRM%3D&reserved=0"
target="_blank">‘Monitoring Financial Resilience Report’</a> to provide a publicly
available assessment of the financial resilience of each water company.</p>
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