bpha Limited’s A+ (stable) rating reaffirmed by Standard & Poor’s

Credit rating agency Standard & Poor’s (S&P) has reaffirmed bpha’s long-term issuer credit rating of A+, Outlook stable in November 2017.

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

  • A strong performance was recorded in 2017 as a result of efficiency gains and strong demand in the regions where bpha operates
  • Adjusted EBITDA margin is expected to average 47% for 2016-20, this margin being among the highest in the sector
  • bpha benefits from very strong liquidity, with high coverage of 2.1x, very strong financial policies, and rigorous long-term planning
  • bpha is somewhat less exposed than other housing associations to welfare reforms
  • Efforts over the past years to reduce its exposure to derivatives is credit positive

Paul Gray, Chief Financial Officer, said: “We welcome S&P affirmation of our stand-alone credit profile, and their recognition of our strong margins, liquidity, and management strength.

“Combined with our recently reaffirmed V1 G1 rating from the HCA, we believe this rating will provide further assurance to our stakeholders and investors that bpha’s sound fundamental business model, which produced a record surplus in 2017, is expected to continue delivering strong performance going forward.”