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Newly merged association keeps A2 credit rating

A newly merged housing association has retained its A2 credit rating from Moody’s.

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Picture: Getty
Picture: Getty
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Newly merged association keeps A2 credit rating #ukhousing

DCH and Knightstone to keep A2 Moody’s rating #ukhousing

Moody’s upholds DCH credit rating after merger #ukhousing

DCH and Knightstone completed their merger last week to form 36,000-home Liverty – the largest landlord in the South West.

The new long-term rating comes with a stable outlook.

DCH, the largest of the pair, previously had an A2 rating with a stable outlook.


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Moody’s said it expects Liverty to retain DCH’s “strong liquidity and unencumbered asset position, very high interest coverage ratios and a moderate appetite for growth”.

The new landlord is expected to have one of the highest cash flow volatility interest cover ratios in the sector at 3.2x.

It has plans to build 1,500 homes a year, with 10-15% for outright sale.

Liverty will inherit a large standalone swap portfolio and heightened mark-to-market exposure, Moody’s said, but has a “robust liquidity policy”.

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