A1 credit rating upgrade from Moody's
Moody's has today upgraded Midland Heart’s credit rating to A1 from A2, with stable outlook.
Speaking of the rating Moody’s said: “The upgrade of Midland Heart's rating to A1 reflects a marked improvement in realised financial performance, enhanced interest cover ratios, and strong liquidity relative to the housing association's (HA's) planned spending needs for a relatively low risk development programme.
“Midland Heart’s strengthened credit profile is underpinned by strong financial controls, proactive risk management and consistent alignment of policies, procedures and practice.
“Midland Heart’s five-year development plan is considered to be relatively moderate, equating to 10% of its current stock size. The HA is planning to increase the numbers of units delivered annually, from approximately 450 units in 2019, to 600 units per year from 2021. The development programme does remain relatively low risk, reflecting their continued objective of operating as a traditional social housing landlord. “
Glenn Harris, CEO at Midland Heart said “Moody’s upgrade of Midland Heart’s rating to A1 is fantastic news and a true testament to the dedication and hard work of our colleagues. This puts us on a very strong financial footing as we prepare to launch our next corporate plan and continue planned investment in our portfolio.
"Furthermore, this upgrade endorses the planned, sustainable increase to our development programme over the next five years which will see us delivering high quality housing that is affordable to rent in the Midlands."
Moody’s full press release can be found here with more details and rationale for their upgrade.