RHP retains joint highest credit rating in sector
Standard and Poor’s (S&P) have reaffirmed a AA- credit rating with a stable outlook for South-West London housing provider RHP.
This result sets RHP apart from their UK counterparts, providing them with the joint highest rating awarded to any organisation in the sector.
In a statement released by S&P they commented that RHP’s rating was underpinned by their “very strong enterprise profile” and that “further support for the rating comes from RHP's skilful and experienced management team. In response to the 1% annual rent cut until 2020 and thanks to its increasing digitalisation of services, RHP has successfully implemented a well-defined cost reduction program”.
At the same time, S&P affirmed a 'AA-' issue rating on the £175 million bond (including £140 million already issued) that RHP issued in 2015.
RHP’s Executive Director of Finance, Corinna Bishopp comments: “We’re really excited to receive this reaffirmation of our credit rating. It is confirmation that our continued focus on delivery of our strategy, our careful approach to financial management and cautious but growing development agenda is successful.”
In April 2016, RHP launched the UK’s first digital only housing service RHPi, and after successful consultation rolled it out to all their customers earlier this year. Designed to lower cost whilst at the same time improve service, the model has already helped the organisation increase customer satisfaction and reduce their operating cost per home. The cost efficiencies they gain from RHPi will help them build around 2,000 more affordable homes over the next six years, including an increased offer for Shared Ownership and an innovative modular product for the intermediate market called ‘LaunchPod’.