News story published on 16 May 2018
Coming hot on the heels of our recent win in the Development Programme of the Year category of the UK Housing Awards, we are pleased to report that credit agency, Standard and Poor’s Global Ratings (S&P) have affirmed their rating of our company at A+, and our outlook as stable.
The S&P report noted we are expected to maintain strong profitability through to 2021, supported by high demand for housing, controlled costs, a new rent regime taking effect in 2021 removing rent cuts, and only a limited increase in debt.
At the same time, S&P affirmed their 'A+' issue rating on the £150 million bond issued in September 2014 by Cambridgeshire Housing Capital PLC, our funding vehicle. Cambridgeshire Housing Capital PLC was set up for the sole purpose of issuing bonds and lending the proceeds to us, and is viewed as a core subsidiary of the our group.
S&P believe that our management is responding positively to the sectors welfare reforms. This, coupled with our tight control of expenditures, strong financial programme and the flexibility built into our development programme places us on a solid foundation for future growth.
We also benefits from our geographic coverage – being located in the East of England, an area marked by growth in market rents in recent years. For us, this translates into high demand for social housing and very low vacancy rates at about 1% of net rental income over the past three fiscal years.
Claire Higgins, our Chief Executive, said: “It really is fantastic news that S&P have affirmed their rating of us. It is testament to the hard work of my team in driving efficiencies across the company, as well as being aware of, and reacting quickly to, risk. This approach is enabling us to continue to increase our development programme and so deliver the homes that are so desperately needed across the region. We are working in challenging times, but with our robust and diligent approach I know we will be able to keep building homes and communities, delivering excellent customer service and supporting the people who need it the most. This rating along with our recent UK Housing Award is proof that CKH is built on firm foundations and ready for the future.”