Ratings agency boost for Great Places
CREDIT rating agency Moody’s has given a favourable assessment of the financial health of North West-based Great Places Housing Group.
The not-for-profit social housing provider based in Manchester, which has raised around £200m on the bond markets to fund developments, was downgraded by Fitch, another of the major ratings agencies late last year.
This week though Moody’s affirmed the A2 issuer and senior secured debt ratings of Great Places. It said the The outlook on the rating remained “stable” and it raised the baseline credit assessment from baa2 to baa1.
Moody’s says it is recognition that Great Places is delivering its business plan and strengthening its operating margin by meeting its financial targets. These have been achieved through efficiencies and improving rent collection rates.
Last year Great Places had a record turnover of £85m and is on course to develop 2,770 new homes within existing contracts by 2018.
Director of finance Phil Elvy said he was “delighted” by the Moody’s comments and its decision to uprate the group’s baseline credit assessment.
He added: “Moody’s recognises we are a major developer of new homes, developing an incredible number for an organisation of our size and geography. Our board-approved growth strategy means development on this scale, under current grant conditions, means we need to remain financially robust but we are totally committed to playing our part in tackling the housing shortage and are well on track to deliver all our HCA contractual requirements.
“We also have a significant supported housing operation which is suffering from huge funding cuts, but we work hard to ensure that we can afford to maintain essential services for some of society’s most vulnerable people.
“To do all this and yet still be seen by Moody’s as having enhanced our financial strength is a fantastic achievement. Moody’s has taken the time required to understand our business model and the key risks we face, and their decision helps validate what we are trying to achieve.”
