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Housing associations maintain stable credit ratings

30 July 2012

Standard and Poor’s (S&P) who provide credit ratings for the debt of public and private corporations around the globe including the UK social housing sector, has confirmed that the sector’s ratings remain stable despite the fundamental changes in the funding regime.

In S&P’s report on the sector, dated 5 July 2012, it examined in detail the impact of:

  • Reduced grant rates and the new affordable homes investment regime
  • Welfare reform and
  • Changes in the sectors regulation.

Based on this it concluded, the sectors credit rating remained stable. However, the report indicates:

  • Borrowing levels are likely to rise slowly in the short term before accelerating in the medium to long term
  • Some registered providers may diversify their revenue sources
  • Consolidation could generate efficiency savings
  • Credit impact of the welfare reform act is uncertain and
  • Global trends in creditworthiness
  • For more detail download the S&P social housing sector credit ratings report (PDF, opens new window)

Increasing pressure to re-price off housing association loans

The days of cheap housing association finance may be over as lenders attempt to re-price historic loan agreements. This article seeks to clarify for boards, rather than treasury experts, whether this is so and what, if anything can be done to avoid it. Read more on the increasing pressure to re-price of housing association loans (PDF, opens new window).