Leading Moody's credit rating retained for another year
We’ve had our leading Moody’s credit rating retained again.
Releasing its annual review Moody’s said that our “stable operating performance, strong liquidity and favourable market position” has allowed it to retain the A2 (stable) rating it has held since June 2019. Together with our A+ rating from S&P it means we have maintained our sector-leading dual credit rating platform.
The reaffirmation of the credit rating comes a week after we posted strong half year results for the financial year, which saw turnover increase to £142m (2020: £129m), operating surplus increase to £64m (2020: £46m) and operating margin on social housing lettings increase to 36%. In addition to our financial standing, Moody’s cite Bromford’s “continued focus on core business” and “strong market position” as key drivers for its credit strength.
Confirming Bromford’s stable outlook once again, Moody’s expect the association’s financial performance to “remain strong over the medium term” over the coming years, supported by “ample liquidity”.
Director of treasury Imran Mubeen said: “Following the release of our half-year trading update last week where we recorded another strong set of financial results, we are delighted to have once again maintained our Moody’s A2 rating. The rating is a testimony to the power of our financial framework, which has withstood the test of time and continues to underpin our corporate strategy as we address the key challenges facing the housing sector. As we emerge from the pandemic, our ratings provide a strong platform to secure new funding to deliver over 11,000 homes by 2029. We are also well on our way with decarbonisation, with over 84% of our homes now at EPC C, and require limited expenditure to comply with the Fire Safety Bill.
“We are particularly pleased that Moody’s continue to recognise our leadership in the ESG space, having issued the first governance loan in the sector, and the first anywhere linked to reducing the gender pay gap. We look forward to issuing our inaugural annual impact report in 2022, following the publication of our accredited Sustainable Finance Framework earlier this year.
“We remain ever committed to maintaining our dual credit rating platform, and using this foundation to invest in our existing homes, to deliver new homes, and ultimately to enable our customers and communities to thrive.”
Read our trading update to September 2021
