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BPHA has credit rating confirmed
Housing association BPHA has had its credit rating reaffirmed by ratings agency Standard & Poor’s (S&P).
The 18,000-home association received a rating of A+ with a stable outlook – the same rating it had previously – after an annual review.
In their rating judgement, S&P commented that efficiency gains and a strong demand in BPHA’s active areas had contributed to a strong performance for the association in 2017. It also noted that it expected the association’s adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) margin for 2016 to 2020 to be 47% on average, one of the highest in the sector.
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It added that BPHA benefits from strong liquidity, with high coverage, strong financial policies and rigorous long-term planning, as well as being less exposed than other associations to welfare reforms and less exposed to derivatives than it had been previously.
Paul Gray, chief financial officer at BPHA, said: “We welcome S&P’s affirmation of our standalone credit profile, and their recognition of our strong margins, liquidity, and management strength.
“Combined with our recently reaffirmed V1/G1 rating from the Homes and Communities Agency, 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.”
