What happened? With results in-line and guidance largely unchanged the focus of the call was on the looming OFWAT final determination (expected 19 December) and the potential impact if UU was to see its credit rating cut. Management emphasised the strong balance sheet in the context of the sector (UU''s debt is currently rated 1 notch above peers) and ongoing dialogue with OFWAT to resolve the outstanding differences (principally totex, ODIs, gated mechanism, financing) ahead of the final determination. Although management believes there are grounds for the cost of debt to rise at the final determination, there is no additional visibility into OFWAT''s propensity to increase the cost of equity. Rating agencies are adding their voice to the call for improvements by the time of the final determination, which only increases the focus on the 19 December final determinations. Key points from the call: . Allowed WACC returns: UU management noted water companies have made representations calling for a higher cost of equity at the final determination, but UU management do not have insight into the extent to which OFWAT may revise the CoE at the final determination. Management noted the cost of debt should be more data-driven and with recent debt issuance across the sector coming at a cost of ~6.3% (nominal), management noted there is not much room for additional equity returns between this cost of debt and the cost of equity at the draft determination of 4.8% real + 2% inflation. . Timing of post final determination financing update: Management wants to leave sufficient time to understand the final determination and would not commit to a precise time period by which it would update the market with the financing outlook for the next regulatory period, including the dividend policy. The intention remains to update the market in ''early'' 2025. . Potential impact of a cut to credit rating: There was some discussion of recent credit rating agency moves to cut the...