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Southern Housing Group has maintained its A1 (negative outlook) rating from credit rating agency Moody’s Investor Services.
Moody's report highlights the Group’s financial strengths combined with an excellent performance in the 2016/17 financial year and rates it among the most financially stable housing associations in England.
The negative outlook in the rating is sector-wide rather than being specific to the Group and reflects the negative impact of the decision to leave the EU and the negative outlook on the UK sovereign rating.
The Group’s strong balance sheet and low gearing, solid liquidity and robust operating margins all contributed to Moody’s opinion.
In 2016-17 the Group invested £16m in improving existing homes and £98m in delivering a total of 393 new homes and starting work on 416 more across London and the South East. The Group’s development strategy aims to deliver 500 new homes a year.
Southern Housing Group’s Chief Executive, Tom Dacey, said “We are delighted that Moody’s continues to recognise our financial strength through the A1 (negative outlook) credit rating.
“We’ve had a clear focus during the past 12 months of maintaining a strong financial position and ensuring we represent good value for money in all of our work and this has clearly paid off.
“This rating is a vote of confidence in the way we organise our finances and manage risk and, as we move forward, it will help to ensure we’re able to continue to build on our vision of providing more homes for people in need.
“We are proud of the Group’s achievements this year – we’ve invested more and grown our business. Every penny of our £62m surplus and more is reinvested in building and maintaining homes and delivering services and support to our customers.”
The successful retention of the Moody’s A1 rating follows Southern Housing Group’s recent release of its Annual Report and Group Financial Statements 2016/17 which includes the Group’s value for money self-assessment.