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Connexus receives improved credit rating

A housing association that hit the news last month when three of its senior executives resigned has had its credit rating improved.

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Picture: Getty
Picture: Getty
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Connexus receives improved credit rating #ukhousing

Credit ratings agency Moody’s upgraded the outlook on Connexus’ Baa1 rating from stable to positive, meaning it could possibly increase.

Last month, three executives resigned without explanation, including the man tipped to take over as chief executive, Jake Berriman.

The chief executive, Peter Brown, has retired, three months after he had originally intended to do so.


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Moody’s said that the change in outlook resulted from “a moderation of [Connexus’] risk appetite within its development programme and the strong performance of its social housing business”.

Duncan Forbes, interim chief executive at Connexus, said: “The positive rating is reflective of the stability in our strong financial metrics, which are set to remain strong into the future, as well as our very strong performance in the social housing business.

“In a short time at Connexus, I have been able to see the strength of the organisation and the leadership team here. The pace of change and the outlook is very positive for us, and we have an exciting future ahead.”

The 10,000-home association was formed through the merger of Shropshire Housing Group and Herefordshire Housing Group in July last year.

It recorded a fall in its surplus of 15% in its latest financial year, from £12.1m to £10.3m, thanks to the depreciation in value of some of its housing properties.

Ruth Cooke, the chair of Connexus’ board, who recently resigned as chief executive of the UK’s largest housing association, said: “Connexus has had a strong first year, outperforming our business plan through cost control, regular monitoring and scrutiny.

“Our social housing operating costs are lower than anticipated and it is encouraging that Moody’s could see the strong projections within our future plans. This is testament to the dedication and commitment of our management team in ensuring that Connexus is a high-performing organisation.”

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