Thames Water’s senior creditors are seeking approval from ratings agencies for a crucial rescue plan that would prevent the ailing utility from slipping into insolvency, people with knowledge of the matter said. The move comes as Thames Water struggles with mounting debt and regulatory challenges that have threatened its financial stability.

The utility, which serves 15 million customers across London and the Thames Valley, has been grappling with a £14 billion debt burden and infrastructure investment needs. The rescue plan represents a critical juncture for the company’s future operations and the broader UK water sector. Creditors are working to secure necessary approvals before potential credit rating downgrades could trigger more severe financial consequences.

This development highlights the ongoing challenges facing privatized utilities in the UK, where infrastructure investment demands and regulatory pressures have created a precarious financial environment. The outcome of the ratings agencies’ review could determine whether Thames Water can continue operating without entering insolvency proceedings, which would have significant implications for customers and investors alike.