Plymouth Community Homes, the largest social housing landlord in Plymouth, has retained its A+ credit rating with a positive outlook – and achieved the highest possible regulatory judgment of G1 for its governance whilst maintaining a V2 grade for its financial viability.
PCH saw its excellent credit rating renewed this month with confirmation published on 20 January by S&P Global after a thorough evaluation of PCH’s past financial performance and future plans was carried out, alongside an assessment of the organisation’s operational record, governance and financial performance.
It is a significant achievement for any business to achieve, and then maintain, an A+ credit rating, especially with an accompanying outlook of ‘positive’, and shows that PCH’s solid business approach makes us an attractive option for investors.
The news follows an announcement earlier this month from the Government’s Regulator of Social Housing (RSH) confirming PCH has again retained the highest possible regulatory judgement of G1 for its governance, which demonstrates that the organisation performs efficiently and effectively as a social housing provider and is fully complaint with all governance requirements and regulatory standards.
PCH also retained its V2 grade for financial viability, showing that the business is stable, reliable and dependable for its investors and for tenants, delivering services effectively and maintaining an ongoing investment in existing and new homes. A V2 grade also shows that PCH has the financial capacity to deal with a reasonable range of adverse scenarios, but needs to manage material risks to ensure continued compliance.
The Regulatory Judgement was published on the RSH website.
Nick Jackson, Executive Director of Business Services and Development at PCH, said: “This is a fantastic result, especially given the ongoing economic challenges facing businesses in the housing sector, and shows S&P judge our credit credentials to be stronger than others, despite the increased costs we have faced to deliver core services.
“We are committed to ensuring value for money alongside achieving our growth plans to deliver 1,500 new homes for Plymouth and the surrounding area over the next five years, and our robust business approach has been recognised.
“Although we have low operating margins, our low debt metrics and prudent planning means we continue being a very attractive option for investors and the rating confirms this. There are many challenges facing housing associations and we will not be immune to future cost pressures, especially to reach net zero by 2050. The A+ rating should help PCH secure the future funding we need to deliver on our development objectives and investment in existing homes.”
Jonathan Cowie, Chief Executive of PCH, added: “To achieve an A+ ‘positive’ credit rating for another year is an absolutely excellent result, and something for PCH to be very proud of. It is unusual in the sector to be able to achieve and maintain a rating as high as this, and means we have a better credit rating than many multi-national companies.
“Alongside our welcome renewed Regulatory Judgement of G1 and V2, this proves we are managing the organisation very well, with balanced and robust financial management alongside ongoing investment in our existing homes and services and the development of more new social housing.
“This credit rating will be essential to help us attract the investment we need from funders so we can deliver on our business plan and expand our development work to build even more much-needed new affordable housing for local people.
“I’d like to pay tribute to our hard-working team for their careful management and diligent work which has helped us to achieve these great results.”
