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East London association hangs on to top credit rating
East London housing association Local Space has kept its top credit rating for the third year running after being awarded an AA- rating by ratings agency Standard & Poor’s.
The 2,000-home association, which was originally established by Newham Council in 2006, provides temporary housing in the capital for people at risk of homelessness, as well as properties for key workers.
It is seen as being particularly credit worthy because it has a financial agreement to guarantee its income from Newham, Hackney and Waltham Forest councils.
Local Space first achieved its AA- rating in 2017 and has held it ever since, making it one of the leading organisations in the sector.
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As well as rent guarantees, the association’s board attributed its success to “timely access to the fund markets” and its ability to manage long-term liquidity.
The association has three funding streams: a £15m facility with Barclays, which was completed last month; a completed £50m loan agreement with lender MORhomes, which it drew funds from this week; and a £15m facility with Santander, which will be completed on 28 February.
Josie Parsons, finance director at Local Space, said: “This is all great news, enabling us to finance our ambitious growth plans to provide homes to house homeless people.”
The association is currently in the process of expanding its portfolio by about 800 homes.
