THFC retains ‘A’ long-term credit rating with stable outlook despite challenging conditions
The Housing Finance Corporation (THFC), the UK’s leading affordable housing aggregator, has had its ‘A’ long-term rating affirmed, along with a stable outlook from S&P Global Ratings.
The ratings agency said that it expects THFC’s management policies and governance standards to continue to support the company’s robust capitalization and strong funding and liquidity ratios.
S&P also affirmed an ‘A’ long-term and ‘A-1’ short term issuer credit rating on its new £2bn sustainable finance vehicle, which was launched in March 2023.
The agency said that despite difficult economic conditions, THFC’s conservative risk management practices will allow the aggregator to withstand high inflation and pressures across its social housing borrowers.
S&P highlighted the strength of THFC’s £8.13bn loan book, which represents 7.8% of the social housing sector’s debt. The agency also noted the low industry risk of the UK social housing sector overall.
Whilst S&P expect the UK social housing sector in general to face increased costs caused by inflation and the need to achieve energy efficiency and fire safety targets which together with elevated interest rates, could result in financial and debt metrics weakening across the sector, they believe THFC’s prudent risk management policies will likely help mitigate the pressure coming from the weakening credit quality of the social housing sector in the UK.
Arun Poobalasingam, Funding and Marketing Director of THFC, said: “Today’s announcement from S&P is an encouraging endorsement of our core business at a challenging time for many industries.
“The social housing sector as a whole continues to face serious challenges relating to building safety, cost inflation and higher interest rates. Of course, borrowing has become more expensive, but we are committed to helping our borrowers deliver on their commitments to build more affordable housing.
“This latest assessment from S&P puts THFC in a strong position to support the sector going forward and we look forward to providing funding for those who need it.”
Notes to editors:
About THFC: The Housing Finance Corporation (THFC) is the UK’s leading affordable housing aggregator, with over £8bn of lending to around 160 housing associations in England, Wales, Northern Ireland and Scotland. THFC was set up in 1987 in partnership with the National Housing Federation and what was the Housing Corporation. It now also operates through its subsidiary company, bLEND, which was established in 2018. As a not-for-profit, the group’s surpluses are retained and reinvested to ensure THFC can continue to provide competitively priced funding for HAs long into the future. THFC’s track record of innovation includes some of the earliest green finance products for retrofit and sustainable developments.
For further information contact:
Piers Williamson, Chief Executive – email@example.com
Arun Poobalasingam, Funding and Marketing Director – firstname.lastname@example.org
Will Stevenson, Group Treasurer – William.Stevenson@thfcorp.com