RHP credit rating announcement
Standard and Poor’s (S&P) have announced an adjustment to RHP’s credit rating from AA- (negative) to A+ (stable).
The rating has been impacted by our plans to substantially increase investment in our development programme (both for affordable rent and shared ownership) over the next five years.
In a statement released by S&P they commented: “The downgrade reflects our view that RHP's financial metrics will structurally weaken over the next two-to-three years as a result of its ambitious development programme over 2018-2023, higher costs due to a fire safety upgrade, and increased first-tranche shared ownership sales activity”.
The reviewed rating of A+ has been awarded with a Stable Outlook, with the report reflecting that RHP have a ‘solid standing against their peers’. S&P also state that RHP’s rating remains strong and is underpinned by the organisation’s ‘excellent asset quality, and operational performance is supported by highly experienced management’.
RHP’s Executive Director of Finance, Corinna Bishopp comments: “We’re excited about our plans for the future that’ll enable us to play a bigger role in helping to solve the housing crisis. We understand that an increased development programme has an inevitable impact on an organisation’s credit rating and fully respect S&P’s decision”.
Now into the second year of our five-year strategy, we plan to build 1,000 new homes by 2023. Our aim is to meet a broader range of needs across west London with homes for affordable rent and Shared Ownership, as well as expanding our offer to the intermediate market.