S&P A+ credit rating retained
We have had our A+ credit rating from S&P Global retained once again.
In its report published today, the credit ratings agency pointed to our robust treasury policy which over the past year saw us secure £190m in funding and refinance our legacy debt. S&P also reaffirmed its A+ rating on our £300m and £250m bonds.
However, S&P did revise its outlook from stable to negative due to our plans to increase investment in our homes to meet our energy-efficiency and carbon-neutrality targets. It predicts that this increased spending will put pressure on the EBITDA (earnings before interest, taxes, depreciation and amortization) margins.
The report from S&P Global said: “Our view of Bromford’s creditworthiness is supported by its continued focus on traditional affordable tenures, very strong liquidity and robust operational metrics.”
It continued: “Despite pressuring profitability we view its increasing investments in stock as supporting its excellent asset quality. Bromford’s stock complies 100% with the Decent Homes Standard and its future energy efficiency targets are part of its wider environmental, social and governance framework. These targets are not only embedded in its business plan but are also the key metrics referenced in one of Bromford’s sustainability-linked facilities.”
The report said that our development ambitions to build 12,000 new homes by 2029 are being supported by its strategic partnership with Homes England and our robust liquidity.
Chief finance officer Lee Gibson said: “We’re pleased to have once again retained out A+ rating in what has been an unprecedented year. The Covid-19 pandemic has shown the importance of having a safe and secure place to call home which is why we’re committed to improving the energy efficiency of our existing homes as well as building new ones.
“The rating is an affirmation of our financial management and our positive approach to continuing to establish high levels of liquidity to help us deliver our development ambitions.”
In November 2020 we retained its A2 (Stable) rating with Moody’s.