Mon 18 December 2017
Three-thousand home housing association Colne has welcomed a review of its credit rating by financial services company Standard & Poors (S&P).
The Essex-based association’s outlook was improved to ‘stable’. This reflects their longer term viability as they continue to build homes in a more challenging domestic and international, economic and political environment.
The credit rating was lowered one point to A. This was influenced by the risk to the open market intrinsic in Colne’s business plan as they continue to build shared ownership homes and start a small pilot of Open Market Sale properties.
This year Colne further strengthened its liquidity position by securing £75 million of new funding to help provide new homes for local people in East Anglia. Colne’s operating margin remains in the top quartile when compared to the housing sector.
Josie Parsons, Colne’s Resources Director, said: “We are pleased to see our outlook improved to stable. It confirms we are well-run and in a financially strong position.
“The review of our credit rating is an accurate reflection of the open market risk that Colne’s Board has identified as we continue to provide a range of affordable homes to help meet the increasing housing need in East Anglia.”