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Hyde given A+ credit rating
Hyde Housing Association has been awarded an A+ credit rating with a stable outlook by Fitch Ratings, reflecting the high demand for social housing in London and the South East, where it operates.
The ratings agency said that Hyde had benefited from continued cash flow from its core social rent business, as well as secured cash flow from government grant and the tight control provided by the Regulator of Social Housing (RSH).
Credit ratings help show how financially stable businesses are by stress-testing their income and expenditure.
Hyde, which owns or manages about 50,000 homes, was also assessed on its level of debt. Fitch said that it expected the association’s net debt to “remain stable within the next five years, despite the ambitious development programme target of 1,500 housing units per year”.
Fitch said that it anticipates Hyde will “continue to demonstrate robust performance, despite the weakened operating environment and increased challenges faced by registered providers in England”.
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It added: “The impact of Brexit on the sector, although still uncertain, appears less evident than on other public finance sectors, such as higher education and healthcare, although the possible consequences have been factored into Hyde’s stress tests.”
Hyde’s diversification into other revenue sources, such as homes for sale, helps it to protect its income, the ratings agency said.
Peter Denton, group finance director at Hyde, said: “I am delighted that we have received this rating from Fitch. It demonstrates the strength of our business and confidence in our ability to perform despite challenges in the market.
“[Fitch] considered our joint venture partnerships and our fully funded five-year development programme to be notable factors in deciding on our rating and outlook.”
Hyde was awarded an A rating with a stable outlook from Standard & Poor’s last July.
