On 16 October 2019, S&P reaffirmed bpha’s long-term credit rating of A+

Credit rating agency Standard & Poor’s (S&P) has reaffirmed bpha’s long-term credit rating of A+ (negative).

In their Research Update, S&P have commented that bpha:

  • continues to have strong enterprise profile underpinned by high proportion of revenues from traditional social housing activities, its dynamic area of operation and its excellent asset quality
  • has a strong liquidity position, underpinned by the group’s strong financial policies and its potential to generate cash consistently from its core activities
  • has extensive experience in the social housing sector with a development strategy which is aligned to its capabilities
  • is expected to maintain a moderate debt burden below 15x EBITDA and interest coverage above 1.5x

The outlook remains negative in line with the previous rating.  This reflects the risk that, over the next two years, bpha’s exposure to market related activities could increase, which would put pressure on operating margins and debt metrics.

S&P also reaffirmed at A+ the senior secured debt rating on bpha’s outstanding bond issued by bpha Finance plc.

Julian Pearce, Chief Financial Officer at bpha, said: “We are very pleased with this reaffirmation of our credit outlook, especially in the current uncertain economic climate where the sector has seen a number of downgrades from both S&P and the regulator.

“It demonstrates our continued strong financial performance and robust governance as we continue to deliver our long-term growth strategy.”