We’ve retained our AA stars!
Christmas has arrived early for us as leading credit rating agency, Moody’s, has revealed that we’ve retained our industry-leading AA3 rating.
You’ll remember that last November we received the fantastic news that we’d achieved the highest grade given by Moody’s to any housing association, with only Affinity Sutton matching us. An extensive review has been carried out again with them this year and, just to prove that 2013 was no fluke, we’ve retained our impressive credit rating! There are now just three HA’s on top of the ratings tree, with Riverside being the other.
This gives us a real ‘seal of approval’ when it comes to borrowing, investment and interest rates as well as providing a whole host of other business benefits (including a much better profile with potential investors). It also puts us on the same level as China and better than Japan as well as being ahead of many other big household names.
In the official statement released by Moody’s they said our AA3 rating reflected our “strong margins”, “low debt levels” and “strong and stable cash flows from social housing letting” among other factors.
Our director of treasury, Alison Cambage, said: “This is a lovely way to end the year. It’s a real acknowledgement of our financial strength and the way we run our business as a whole – so a big pat on the back to everyone!”
What is a credit rating?
In short, it’s an independent assessment carried out by a rating agency (such as Moody’s) of how safe it is to lend money to an organisation. It focuses on how likely the organisation is able to repay the interest and the capital lent to them. The better the rating, the safer your money is.