We have retained our A rating from S&P
We have retained our A rating, and seen our outlook improved to positive, by Standard and Poor’s Global Ratings (S&P) following their recent review.
The improved outlook reflects S&P’s view that our cost-containment measures will allow us to sustain strong financial and debt metrics despite inflationary pressure on costs.
S&P noted that we have a consistent strategy and very experienced management team which enables us to respond flexibly and proactively to sector and economic challenges – as seen in the recent decrease in our exposure to market sales risk. We have identified and performed a number of cost-saving measures to mitigate the impact of our increasing cost base. Additionally, our development program remains more than 60% uncommitted. Plus, we have worked hard to ensure almost all of our stock already meets the environmental target of having an Energy Performance Certificate C, which most of the sector aims to meet by 2030. All of which puts us in a strong position.
We also benefit from stronger operational metrics than many of our peers, with vacancy rates averaging 0.7% of receivable rent and service charges over the past three years. This is lower than the market average of 1.6% 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 asset quality, S&P believe we will be able to sustain good operational performance.
Claire Higgins, our Chief Executive, said: “I am absolutely delighted that our hard work in the face of an exceptionally challenging time has been recognised by S&P. Despite the extensive economic pressures facing the sector as a whole, we have remained flexible and able to respond to the constantly changing economic and political landscape.
“Whilst we remain determined to grow and build new, desperately needed, affordable homes, our primary commitment remains with our existing residents and communities. Despite everything we have faced, I am extremely proud that we have continued to provide our residents not only with the high-quality homes they need, but also with the additional support of our Community Investment programme, independent living solutions for older people and a determination to keep on supporting vibrant, successful and thriving communities.”