Bromford maintains A+ credit rating from S&P
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Bromford, one of the largest housing associations in the Midlands and South West, has retained its leading A+ credit rating from S&P after receiving praise for its “strong financial profile” and “exceptional” liquidity position.
It was announced today that S&P Global has reaffirmed Bromford’s A+ credit rating after acknowledging the 42,375 homes under management landlord’s successful partnerships with Merlin Housing Society and Severn Vale over the past 12 months. The credit ratings agency also pointed to the housing association’s strong liquidity profile following its inaugural £300m bond issuance in April 2018 followed by its £100m private placement secured last month, both at sector leading rates.
In a report, S&P Global said: “The 'A+' rating is supported by our view of Bromford's strong financial profile following the completion of mergers with Merlin Housing House Society in July 2018 and Severn Vale Housing Association in January 2019.
“We view Bromford's liquidity position as exceptional on the back of a £300 million bond issuance completed in April 2018 and a £100 million private placement, due to be drawn in May 2019. Bromford inherited about £290 million of facilities from Merlin and subsequently restructured them into new revolving credit facilities. This also strengthened the group's liquidity position.”
Whilst the rating outlook remains negative, S&P have confirmed this is attributed only to a future lowering of the U.K. sovereign rating.
S&P’s announcement, coupled with the A1 credit-rating from Moody’s, continue to position Bromford as the sector-leading dual credit rating despite the current economic uncertainty and its pledge to ramp up its housebuilding programme to build 13,500 new homes over the next decade.
Imran Mubeen, Bromford’s head of treasury, said: “We are delighted to have maintained our A+ rating which confirms the strength of our new business strategy and the recent consolidation of three organisations into one, larger business which is able to do even more in the communities we serve.
“The rating also reflects our proactive approach over the past 12 months to establish healthy levels of liquidity through capital market issuances and new bank facilities. It also reflects our renewed strategic focus on delivering our core business and services across our four main geographies. We aim to deliver 13,500 new homes over the next 10 years with a business plan underpinned by financial discipline and a focus on maintaining strong credit ratings.”