CKH ‘to remain stronger than peers’ as A+ Stable credit rating is retained
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 many peers.
The rating reflects S&P’s view that our prudent management policies and flexibility within our business plan will allow us to successfully navigate increased investments in our existing housing stock and accommodate for pick up in our development programme spend.
S&P noted that we have a consistent strategy and very experienced management team which enables us to proactively address sector and economic challenges. They also expect that rising revenue from our core social housing portfolio will enable us to manage higher requirements for investments in existing units amid any increasing demand for repairs. In addition, we have worked hard to ensure nearly all our housing units have already achieved Energy Performance Certificate (EPC) C standards, ahead of other social housing providers.
We also benefit from stronger operational performance than many other housing associations, with vacancy rates averaging 0.6% of receivable rent and service charges over the past three years. This is lower than the market average of 1.7% in England over the same period. Coupling that with our advantageous geographic location of the east of England, where demand for housing remains strong, and our focus on stock quality, S&P believe we will be able to sustain good operational performance going forward.
Claire Higgins, our Chief Executive, said: “It is encouraging news that S&P have recognised our hard work, in often challenging conditions, and confirmed that our A+ Stable rating remains. Our flexibility in a constantly changing economic and political landscape has enabled us to respond quickly 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. Now, in our 20th year, we are embarking on our largest refurbishment programme to date, spending £9.3m this year alone on kitchens, bathrooms and heating systems. In addition to the high-quality homes people need, we will also continue with the life changing support offered by our Community Investment programme, independent living solutions for older people and our determination to keep on supporting vibrant, successful and thriving communities.”