Bromford awarded A2 stable rating for fifth consecutive year

It also had strong liquidity coverage of its net two-year spending requirements, as of September 2024.

The landlord’s social housing letting interest coverage was maintained at 1.9x, which is also above the average for its peers. However, its “forward-looking three-year average is expected at 1.6x”.

Matthew Rose, director of treasury at Bromford, said: “We’re incredibly pleased to have retained our A2 rating during a period where the sector has been facing a number of external challenges from rising costs and the need to invest more in existing homes.

“Maintaining sector-leading credit ratings, alongside our G1/V1 ratings from the regulator, provides us with a very strong foundation on which to deliver our ambitious strategic objectives.

“We want to build an additional 11,000 homes by 2032 to help tackle the shortage of affordable housing in the country.”

From March to September, Bromford completed more than 450 homes, including 220 for social rent.

The rating agency also considered a merger with Norwich-based housing association Flagship Group that was proposed in June.

Bromford has 47,000 properties in the West Midlands and the South West, and a merger would create one of the largest housing associations in the country, with around 80,000 homes.

In the six months to the end of September, Bromford’s surplus rose by 9% year on year, to £36m after tax.

Both landlords previously said they expected the merger to be complete by spring 2025. Under the plans, Bromford will become the parent group and will be renamed Bromford Flagship.

Last month, Bromford and Flagship reported rising half-year revenues, but are facing spending pressures on improving existing homes as they prepare to merge.