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South West landlord has outlook revised from stable to positive
Standard & Poor’s (S&P) has updated its outlook for Plymouth Community Homes (PCH) to “positive” after predicting an improvement in the association’s financial performance.
The credit ratings agency also maintained the social landlord’s A+ long-term issuer credit status.
S&P had previously handed Devon-based PCH a stable outlook rating, but revised this upwards as the association’s credit metrics could “remain significantly stronger than [its] peers”.
S&P said the 16,000-home landlord had maintained “very strong” credit metrics despite undertaking “significant” investments during a challenging economic period.
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S&P added: “We project PCH’s rent increases will outpace inflation and cost management will contain pressure from continued investments in existing stock.
“We anticipate PCH will prudently manage any likely debt increases to mitigate pressure on debt metrics.”
Jonathan Cowie, chief executive of PCH, hailed this a “truly excellent result”.
“This bucks the trend in the sector and shows that our balanced approach to investing in our existing homes and services alongside developing more new homes for social housing is the right approach.
“I congratulate our finance teams for their careful stewardship and guidance, and thank our staff, board and directors for all of their hard work and commitment,” he said.
Mr Cowie added: “We have ambitious plans for the next five years as we deliver our strategic business plan, and this credit rating will be essential in helping us to secure the necessary funding to deliver on our objectives and on our mission to ensure a high-quality home for everyone.”
At the end of November, S&P said the sector may have reached a “turning point” in financial performance.
Although it said the “negative bias” seen in the sector will remain, it is likely to ease in the current financial year as margins “strengthen modestly”.
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