A stock transfer housing association has been judged a better investment risk than well known companies like B Sky B and Stagecoach
Beckenham-based Broomleigh housing association has become the first registered social landlord to be issued with a credit rating by rating agency Standard & Poor's.

The association, which manages 14,500 homes in the London boroughs of Bromley and Croydon, has been given a triple B-plus rating, which means it is regarded as a safe investment with low risks.

The rating puts it on a par with major companies such as Rank Group, Electrolux and Northern Electric, who also have triple B plus ratings, and above many other household names, including B Sky B and Stagecoach.

The highest possible rating - given only to major economic units, is triple A, while the lowest - for extremely risky outfits - is triple C.

Standard & Poor's spokesman Jonathan Manley said the triple B plus mark was "a very good rating for a housing association, given that there is a certain charitable objective involved."

He said it showed Broomleigh was "a strong investment".

Standard & Poor's has provided private ratings for other housing associations, but this is the first time a general rating has been made public. Organisations that want to achieve a rating have to approach Standard & Poor's, then submit themselves to a rigorous financial audit. Manley claimed the Broomleigh rating would be "the first of many" by RSLs.

Broomleigh chief executive Keith Exford said the rating would help the association raise more private finance for forthcoming development and regeneration work.

He said: "As an LSVT of only seven years standing we were particularly pleased to get such a strong rating. This gives us a sense of confidence about our business and it also means a lot to private financiers who respect the rating."

Exford, who urged other associations to go for a rating, said Broomleigh's triple B plus status reflected the strength of the RSL sector generally.

Source

Housing Today