Adjusted interest cover notional 2.22 1.54 FFO net debt notional 11% 13% 2017-18 Actual PR19 (2020-25 Metric Average) 64.0% 67.4% Actual gearing 1.86 2.08 Adjusted interest cover actual 12.0% 11.1% FFO net debt actual Commitment to financial resilience Our financial resilience starts with the long-term support of our shareholders. During 2015-20 they have retained equity in Bristol as it transforms, reducing geaing from 71.5% in 2015 to 64% in 2018. The hard choices for financial resilience in the plan include one notified item for an uncertain cost we face from the Canal & River Trust, where we propose a 75% allocation of cost risk and opportunity to customers, as a fair allocation of risk. In line with customer preferences for avoiding bill volatility, we propose capping the annual value of ODIs at £2.5m, with any excess rolling forward to the following year. Our plan indicates our actual credit rating with Moody’s below current levels, reflecting 2015-20 performance incentives and the lower cost of capital. Our financial resilience relies on the efficient company specific adjustment to the cost of capital, as well as the specific measures we propose. Table 2.3: RCV Control 1 2020 (£m) 30 2025 % growth (£m) Opening RCV Closing RCV 2017-18 FYA (CPIH deflated) 2017-18 FYA (CPIH deflated)
Adjusted interest cover notional 1.54 2.22 FFO net debt notional 11% 13% Metric 2017-18 Actual PR19 (2020-25 Average) Actual gearing 64.0% 67.4% Adjusted interest cover actual 1.86 2.08 FFO net debt actual 12.0% 11.1% Commitment to financial resilience Our financial resilience starts with the long-term support of our shareholders. During 2015-20 they have retained equity in Bristol as it transforms, reducing geaing from 71.5% in 2015 to 64% in 2018. The hard choices for financial resilience in the plan include one notified item for an uncertain cost we face from the Canal & River Trust, where we propose a 75% allocation of cost risk and opportunity to customers, as a fair allocation of risk. In line with customer preferences for avoiding bill volatility, we propose capping the annual value of ODIs at £2.5m, with any excess rolling forward to the following year. Our plan indicates our actual credit rating with Moody’s below current levels, reflecting 2015-20 performance incentives and the lower cost of capital. Our financial resilience relies on the efficient company specific adjustment to the cost of capital, as well as the specific measures we propose. Table 2.3: RCV Control 1 2020 (£m) Opening RCV 2017-18 FYA (CPIH deflated) 30 2025 (£m) Closing RCV 2017-18 FYA (CPIH deflated) % growth