Sanctuary Housing Association has made its credit rating from Moody’s Investor Service public knowledge.

The landlord already had a confidential A1 rating, but following a new assessment this rating has now been publicly confirmed.

Sanctuary also has an equivalent AA-rating from Standard and Poor’s.

Moody’s rating takes into account Sanctuary’s wide geographical spread of stock across the country, which could help insulate it from regional slumps in demand. However, also factored in is the percentage of turnover lost to rent arrears, and while this is lower than the UK average, it is higher than the Housing Corporation’s old recommended level of 4%.

Benjamin Clay, associate analyst at Moody’s, said: “Sanctuary is looking to expand and may require further funding for that. An A1 rating would be an advantage for them in the capital markets.”

Piers Williamson, chief executive of not-for-profit lender the Housing Finance Corporation, said the run of strong ratings showed the sector was holding up well in difficult times.

Sanctuary is thought to be one of a number of landlords bidding to take over Shaftesbury Housing Group, now under corporation supervision.

Source

Housing Today