You are viewing 1 of your 1 free articles
Housing association Aster has had its A+ rating and stable outlook confirmed by ratings agency Standard & Poor’s (S&P).
The 29,000-home association also had the A+ rating on its £250m bond issue, priced in 2013, affirmed.
In its report on the association, S&P noted that Aster had, like many housing associations, increased its market sales development in response to reduced levels of government grant. Nevertheless, it said it expected Aster’s management team to manage the increased exposure “effectively”.
It added: “Aster continues to benefit from a very strong enterprise profile and strong financial profile.”
S&P predicted that Aster’s exposure to market-related activities would increase in the next three years, to represent about 15% of revenues, a similar view to the one given by Moody’s in its outlook on the whole sector for 2018.
The rival ratings agency predicted that market activity would play an increasingly prominent part in housing associations’ activities.
Chris Benn, group finance director at Aster, said: “This affirmation of our strong credit rating comes at the end of another record year for the group.
“Aster is becoming a more productive developer and a more profitable business. This means we are in the best possible position to deliver a wide range of high-quality housing for people in the communities where we operate.”
S&P’s report also indicated that the agency expects Aster to increase the amount of borrowed money it is using to increase the potential return on investments.