Credit rating

Aa2 rating

Our credit rating issued by Moody’s Investors has further demonstrated our strong financial position, well-diversified housing stock and experienced management team. After completing their mid-year review, Moody’s recently reaffirmed the Group’s Aa2 (Stable) credit rating.

In particular, Moody’s noted the following:

The Aa2 issuer rating of Affinity Sutton Group Ltd (ASG) reflects the sound financial position, the strong cash flows and liquidity, the stable and experienced management team, and the strong regulatory framework in which it operates. The rating also takes into account ASG's restricted financial flexibility over social housing rents, which is typical for the sector; its exposure to sales, which adds some risks to revenues and cash flow; and its relatively high debt burden. The rating also reflects Moody's assessment of a high likelihood that the UK government would act to prevent a default by ASG.

ASG is rated in the upper range of UK housing associations, whose ratings span from Aa2 to A1. ASG's position relative to national peers reflects its lower debt burden; its strong interest coverage, with some reliance on sales; and its strong internal governance for risk management.