We have retained A+ and Stable credit rating from S&P
We have retained our A+ Stable rating from Standard and Poor's Global Ratings (S&P) following their recent review. The rating indicates that S&P forecast our financial performance is likely to remain stronger than national peers.
The rating reflects S&P's view that our experienced management team and consistent strategy enable us to proactively address sectoral and economic challenges.
We employ various mitigation measures, such as reprofiling repair costs and moderating development activity, with 60% of our development program currently uncommitted. Furthermore, our robust assessment of unit conditions and investment requirements helps mitigate the risk of unexpected cost increases.
S&P recognised nearly all our housing units have already achieved Energy Performance Certificate (EPC) C standards, which they consider to be ahead of other social housing providers. These factors provide us with considerable flexibility to prevent our financial performance from weakening materially beyond our projections, even if market conditions worsen.
We benefit from a strong market position and the generation of most of our earnings within the predictable, countercyclical social housing sector. Our location within the East of England, primarily in Peterborough, is beneficial, along with the strong demand for our properties which is driven by our social and affordable rent levels, which average approximately 60% of local market rents. This demand is evidenced by our vacancy rates, which remain below the English market average despite a slight uptick in recent years.
Claire Higgins, our Chief Executive, said: “It is very encouraging news that S&P have recognised our hard work, in light of the current economic climate, and confirmed that our A+ Stable rating remains. Our flexibility in a constantly changing economic and political landscape has enabled us to respond quickly to change and remain in a strong position year on year.
“We remain committed to building new, desperately needed, affordable homes. But this will never be at the expense of our existing residents and communities. We continue to invest in our homes and neighbourhoods to ensure that our residents have the best possible places to live and opportunities in life. Our community investment strategy, older persons service and tenancy sustainment work continues to lift up the most vulnerable in society and our incredible, passionate team continue to do the best they can to change lives.”