A Hertfordshire-based housing association has had its outlook revised from ‘stable’ to ‘positive’ due to ‘strong demand’ for condominium sales.
S&P Global upgraded its credit rating earlier this week (Photo: Getty)
Thrive Homes sees credit rating upgrade from ‘stable’ to ‘positive’ due to strong demand for #UKhousing condominium sales
In Thrive Homes’ latest credit rating update, ratings agency S&P Global Ratings said the strong performance of the owner’s core social housing portfolio of 5,000 units and strong demand for its sales in co-ownership will continue to support its profitability.
At the same time, S&P affirmed the ‘A’ rating on Thrive’s £200m senior secured bond issued by the owner’s finance vehicle, Thrive Homes Finance.
Thrive was expected to maintain strong liquidity, benefiting from future draws on the bond tap issued in November 2021.
S&P found that increasing investment in existing assets and inflationary pressures will weigh on owner debt-service metrics over the next two years, but said it believes Thrive “will likely be more resilient than many of his peers.
S&P said Thrive “sees strong demand for its properties, given their proximity to London.”
“The group is focused on expanding into this area, which has some of the highest property prices in England. Thrive is benefiting from strong demand for its property, supported by social, affordable and lower-intermediate rents. at 60% of market rents. This is also demonstrated by Thrive’s low vacancy levels at 0.6%, which are below the industry average,” the rating agency added.
Mark Farrar, Executive Director of Resources at Thrive, said: “This is good news from S&P that affirms our position that Thrive is resilient in the industry and well positioned for growth, with solid fundamentals, given the demand. of much-needed affordable housing in areas that are among the most expensive to live in the UK.