Social housing sector’s credit worthiness stable
Despite increased financial pressures, generated by government cuts and the Welfare Reform Act (Universal Credit), a major ratings agency has announced that the UK’s social housing sector’s credit worthiness is stable.
The report, by Standard & Poor, claims that the majority of housing associations will be able to accommodate to the lower level of government grant and that it expects that most of the sector it rates – typically larger housing associations, that issue own-name bonds – will maintain their current rating.
Sanctuary Housing Association, London & Quadrant and Sovereign Housing Association are currently rated by S&P at AA-; the fourth-highest possible rating. Home Group and Places for People are currently rated at A+; the fifth highest rating.
The report also added that the impact of the impending introduction Universal Credit, which will replace the payment of housing benefits direct to landlords, would create uncertainty for lenders.
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