Network Homes retains ‘A’ credit rating
31 October 2022
We're pleased to have retained a credit rating of ‘A’ in our second public rating.
Credit rating agency Fitch assessed Network Homes' financial and operating profile along with revenue defensibility. Their rating was driven by our strong position in terms of revenue defensibility and operating risk and having a strong financial profile. The agency’s report also said the long-term outlook was ‘negative’ following a ‘stable’ outlook in 2021. Due to a more challenging operating environment, this revision was expected.
The report says our costs and debts are likely to increase over the next few years caused by the impact of building and fire safety costs. But Fitch said our performance was likely to return to historical levels and stabilise, supported by the delivery of new homes through our development pipeline. Fitch expects our operating revenue to remain at around £250 million in the medium term.
We’re pleased to have maintained our strong credit rating which demonstrates our financial strength through an uncertain macroeconomic environment. Our latest business plan includes multiple rent cap scenarios, and the revision of our outlook was anticipated. We operate a comprehensive early warning scheme and retain numerous levers to further bolster our financial resilience as required whilst retaining our focus on the safety of and service delivery to our residents as well as our ongoing development programme. We are committed to remaining an attractive investment destination for our current and potential future investors.Peter Benz, Network Homes Director of Finance