Landlord given strong credit rating ahead of bond
A northern housing association is planning a new bond issue later this this year after having its credit assessed by two leading ratings agencies.
Moody’s and Fitch both gave Great Places strong credit ratings ahead of an issue expected to come later this summer.
The 15,000-home Manchester-based landlord was given an Aa3 rating from Moody’s and a long-term rating of AA- from Fitch. Both ratings represent the fourth highest given by the respective agencies.
Phil Elvy, finance director, said that the proposed bond would be used to fund its development programme.
Great Places will receive £40 million from the Homes and Communities Agency to build 1,751 homes as part of the £1.8 billion affordable homes programme.
The landlord would not say how much it hopes to raise through the prospective bond issue, but Mr Elvy added: ‘We recognise the importance of scale and are planning for an issue similar to those of our peers, who have issued recently.’
Other recent housing association bond issues include Sanctuary Housing (£300 million), London & Quadrant (£250 million) and Hastoe (£100 million).
The sector has raised more than £1 billion on the capital markets since the start of 2012.