Network Homes handed ‘A’ in first public credit rating
04 November 2021
We've been handed a credit rating of ‘A’ in our first public rating with a long-term outlook of ‘stable’.
Credit agency Fitch assessed Network Homes' financial and operating profile along with revenue defensibility. The rating is an indication that we're in a very strong position in terms of our capital structure and liquidity.
The agency found that “Network is supported by considerable affordable and social rent and care income for revenue, with a shared-ownership (SO) sale portfolio in a large and profitable market.”
Fitch added that it expects Network’s strong performance to continue, aided by a mixed-tenure development plan that aims to deliver housing for open market sale, affordable housing and shared-ownership properties. Network has a development pipeline of 2,800 homes over the next five years.
Operating revenue is expected to continue at around £250 million in the medium term, all of which is available to service Network's debts. The agency acknowledged the challenges the sector is facing in terms of building safety remediation but noted Network had budgeted £92 million for this work over the next five years and has a dedicated building safety team working through a risk-based programme.
We've held a private credit rating since October 2018 with this public announcement bringing it into line with other G15 housing associations.
Anup Dholakia, Network Homes Director of Corporate Finance, said: “We are pleased with the outcome of our inaugural public credit rating, having held a private credit rating for a number of years. In a very dynamic market with a preponderance of innovative funding propositions, we believe this rating reflects the strength not only of our underlying business model, but of Network's robust capital structure and liquidity position.”
At Network Homes we continue to pursue our ambitions to develop more affordable housing and make sustainable investments in our existing stock. A public rating enables us to further diversify our routes to market in the future and reach a wider investor base.Peter Benz, Network Homes’ Executive Director of Finance