Southern Housing Group’s steadfast position in the sector has been endorsed by credit rating agency Moody’s Investor Services, which has rated us as A1 after carrying out a detailed credit analysis.
The strong rating is a vote of confidence in the way that we organise our finances and manage risk, as well as our guardianship of the legacy left by our founder, Samuel Lewis, over 100 years ago.
Tom Dacey, chief executive of Southern Housing Group, says: “Despite the widespread financial challenges over recent years, we have kept focused on improving performance and worked hard to increase efficiency and to strengthen our financial position. And we achieved all three objectives last year.
“The Moody’s rating will give additional confidence to our stakeholders that in uncertain times Southern Housing Group remains reputable, financially sound and well managed.”
As a not-for-profit organisation, Southern Housing Group invests any money that we make back into our business. We use this money to build new affordable homes and to maintain or improve the homes that residents already live in.
For every new property that Southern Housing Group is developing under our 2011-15 Affordable Homes contracts with the Homes and Communities Agency and the Greater London Authority, we will fund around 86% of the cost ourselves.
This means that for every £1 of Government subsidy for building new homes, the Group adds more than £6 from private finance which is serviced from our internal resources.
Tom adds: “We are able to contribute in this way because of our longterm approach to financial planning which includes constantly investing to keep all of our existing homes in good condition.
“With Moody’s affirmation of our financial stability, investors will have greater confidence in us. And we will be in a strong position to secure the most competitive loans available so that we can continue to provide quality, affordable homes that meet a range of housing needs.”
Moody’s recognised Southern Housing Group‘s: solid operating margins; comfortable and stable cash flows (generated) from low-risk socialhousing letting; and (their) current assessment of a strong regulatory framework for English housing associations’ in their report.